21 January 2025
The South Korean Suwon District Prosecutors’ Office recently unveiled a major case of industrial espionage involving former engineers from Samsung Electronics. On January 19, officials disclosed that these individuals are accused of stealing advanced semiconductor technology and attempting to transfer it to China. The charges include violations of the Industrial Technology Protection Act and the Unfair Competition Prevention Act, both designed to safeguard critical industrial technology.
The incident highlights a sophisticated new method of technology theft, where foreign entities establish operations in South Korea to secretly acquire high-value innovations. The stolen technology, which took Samsung over three decades to develop, is vital to the semiconductor industry. It enables the cleaning of semiconductors without causing damage, making it indispensable to global manufacturing. Classified as a “national core technology” by the South Korean government, it plays a critical role in the country’s economic and security landscape.
Investigators revealed that the operation began when a Chinese individual, referred to as Mr. A, and a former Samsung team leader, identified as Mr. B, collaborated to form a company that produced semiconductor cleaning equipment. Using their knowledge gained at Samsung, they illicitly acquired proprietary technology. Backed by financial support from a Chinese semiconductor equipment firm, the group successfully developed a prototype and even prepared two mass-production units for export.
Their efforts, however, were thwarted when law enforcement raided the company’s premises, uncovering crucial evidence. Investigators relied on advanced forensic techniques to trace “digital fingerprints” within the company’s data. These traces confirmed that the technology was not independently developed but directly stolen from Samsung.
Although the accused have denied the allegations, this case demonstrates the evolving tactics used to steal advanced technologies. Rather than simply recruiting engineers from abroad, perpetrators are now creating entire operations within South Korea to access sensitive innovations. Prosecutors emphasized their commitment to taking decisive action against such violations to protect the nation’s industrial assets.
This case underscores the critical need to safeguard technological advancements, especially those essential to national security and economic stability.