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Former Samsung researcher indicted for allegedly leaking chip technology to Chinese rival

Published: 02 May. 2025, 16:09

The Samsung Electronics in front of the company headquarters in southern Seoul on April 8 [YONHAP]

A former Samsung Electronics researcher has been indicted for allegedly leaking key semiconductor technology to a Chinese competitor.

The Seoul Central District Prosecutors’ Office said Friday that it indicted a 55-year-old former researcher surnamed Jeon, who moved from Samsung Electronics to China’s ChangXin Memory Technologies (CXMT), on charges of illegally acquiring and using DRAM manufacturing technology designated as a national core technology.

The technology had reportedly cost Samsung about 1.6 trillion won ($1.13 billion) to develop.

Jeon, along with another former Samsung manager surnamed Kim, is accused of orchestrating a plan to transfer Samsung’s proprietary knowledge to CXMT and recruit key personnel to aid in developing DRAM chips at the Chinese company.

According to prosecutors, the pair had contingency plans to avoid investigation, such as using a coded message — four heart emojis — in group chats if either was banned from leaving the country or arrested.

Investigators say Jeon and Kim helped set up a shell company in China that operated in a completely different industry. They then posed as employees of that firm while actually working for CXMT.

CXMT is China’s first DRAM semiconductor company, established with an investment of 2.6 trillion won from a provincial government.

Jeon reportedly received 2.9 billion won over six years from CXMT, including a 300 million won signing bonus and 300 million won in stock options.

His accomplice, Kim, was indicted in January 2024 and later sentenced to seven years in prison and fined 200 million won by a lower court.

Prosecutors said they are continuing to track another suspect who is believed to have leaked internal Samsung data, with assistance from the International Civil Aviation Organization (ICAO).

“A single year’s estimated loss in revenue for Samsung due to this case already amounts to several trillion won, with long-term damages projected to reach tens of trillions,” a prosecution official said. “We will respond firmly to technology leaks that threaten national and corporate security.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY SUK GYEONG-MIN [[email protected]]