Toptec executives jailed and fined for China data leak

An advertisement for Samsung Electronics' Galaxy 22 series, which uses the edge display technology in its Ultra model [YONHAP]

The ex-CEO and employees of Toptec, an electronic display manufacturer, were found guilty for leaking Samsung Display edge panel technology to China.

The Suwon High Court overturned the lower court's decision and sentenced the ex-CEO of Toptec to three years. Three executives were sentenced to two years, three employees to one year and two other employees were fined 10 million won ($7,570).

Toptec and one other company were prosecuted and fined 100 million won under the joint penal provision, a provision that holds the employers of prosecuted employees also liable for the criminal act.

The accused face charges of leaking industrial technology and business secrets, such as specifications and panel blueprints of the 3D lamination technology received from Samsung Display, into China in April 2018.

The 3D lamination technology is a key technology used in flexible OLED edge panels, like the curving edges in some of the Galaxy smartphones.

It took six years, 38 engineers and 150 billion won of research funds for Samsung Display to develop the edge technology.

They leaked the information to another company that they established and transferred the data to two Chinese companies.

They also sold 16 display products that their private company made from the stolen technology to Chinese companies between May and August that year and attempted to sell 8 more.

A lower court had ruled in favor of the accused in 2021, saying that Toptec had the right to use the information because the patented information was already disclosed or known in the business field and that Toptec had contributed to its development.

The appellate court overruled the verdict, saying that it had misjudged the relevant facts and legal principles.

“The said technology can be categorized as a 'high technology' announced by the Ministry of Trade, Industry and Energy and therefore not disclosable information,” the Suwon High Court said in its ruling, adding that the accused failed to uphold their legal duty of keeping business secrets.

BY HYEON YE-SEUL [sohn.dongjoo@joongang.co.kr]