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Photo = Samsung Electronics |
[Alpha Biz= Kim Jisun] A former Samsung Electronics executive accused of leaking key semiconductor technology to a Chinese company has been sentenced to seven years in prison, the longest sentence ever handed down for a technology theft case in South Korea.
On Wednesday, the Seoul Central District Court’s 25th Criminal Division (Presiding Judge Ji Gui-yeon) sentenced the former Samsung senior manager, identified by his surname Kim, to seven years in prison and imposed a fine of KRW 200 million. Two former employees of a Samsung partner company, identified as Bang and Kim, were also sentenced to two years and six months and one year and six months in prison, respectively.
Kim was indicted in January last year for illegally leaking Samsung’s 18-nanometer DRAM semiconductor process information, which was allegedly used to aid the product development of ChangXin Memory Technologies (CXMT), China’s sole DRAM manufacturer. Prosecutors argued that after obtaining Samsung’s proprietary information, CXMT successfully mass-produced semiconductors, surpassing technical barriers.
The court found that Kim had orchestrated the leak. During his final defense, Kim claimed that he believed the information was “general technology” and that it was prepared as promotional material for investors.
The court stated, “Kim illicitly acquired, disclosed, and used Samsung’s process information, which is classified as a national core technology. Considering the substantial costs Samsung and other Korean semiconductor firms invested in development and production, as well as the fact that a Chinese competitor successfully mass-produced similar products using the leaked data, the financial damage to the victim company is likely to be enormous.”
The judge further criticized the crime, saying, “It gravely undermined fair competition in the industry and inflicted significant harm on the competitiveness of South Korea’s national industry.”
The National Intelligence Service (NIS) detected signs of the leak and referred the case to prosecutors in May 2023.
Prosecutors alleged that Kim transferred to the newly established CXMT in 2016, taking with him deposition process data and seven sets of core manufacturing technology documents. He was also suspected of receiving illicit payments worth hundreds of billions of won.
Additionally, prosecutors believe Kim lured more than 20 key technical staff from Samsung and its affiliates, offering them post-tax payments exceeding KRW 500 million each.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
