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Suspected chip design leaker caught trying to flee to China

Published: 16 May. 2025, 17:38

A display of Korean chip giant SK Hynix's 16-layer HBM3E chip is displayed at the SK AI Summit in Seoul on Nov. 4, 2024. [YONHAP]

Korean police referred a man in his 40s for potential prosecution on Friday, accusing him of attempting to leak semiconductor packaging technology overseas.

The Seoul Metropolitan Police Agency’s security investigation bureau accused Kim of committing violations the Unfair Competition Prevention and Trade Secret Protection Act including leaking trade secrets.

Police arrested him at Incheon International Airport on May 9, and the Seoul Central District Court approved a request for his pretrial detention on May 12.

Investigators said that Kim stole semiconductor packaging technology related to high bandwidth memory (HBM), with the intent of leaking it abroad. HBM is a next-generation chip packaging technique that stacks and binds multiple chips to increase performance. As global demand for AI semiconductors rises, the technology has emerged as a critical component in the field.

Kim previously worked at a Korean company recognized as a “hidden champion” in the industry. The firm, known for its dominance in the global market for packaging materials, is the exclusive supplier of precision components to a major domestic semiconductor manufacturer that mass-produces HBM chips.

Police suspect that Kim, who left the company earlier this year, planned to take the proprietary technology to China — possibly to join a competitor or launch a new venture.

Authorities are now investigating whether he successfully transferred the technology, how the leak occurred and whether accomplices were involved. They described Kim as a seasoned industry expert with extensive experience in the semiconductor field.

Leaking trade secrets overseas is classified as a serious criminal offense under Korean law, punishable by up to 10 years in prison or a fine of up to 100 million won ($72,000).

A model of SK hynix's high bandwidth is displayed during the World IT Show at Coex in southern Seoul on April 25. [AP/YONHAP]

The case follows a recent string of incidents involving the unauthorized transfer of advanced Korean technology to Chinese firms.

On May 7, the Suwon High Court’s Criminal Division sentenced a former SK hynix employee to five years in prison and a fine of 30 million won for leaking company technology.

The employee, a Chinese national, was indicted on charges of stealing documents containing methods for resolving semiconductor process issues just before resigning from the company. The offender joined a Chinese firm in 2022 that paid a higher salary.

The court emphasized the need for harsh penalties in the interest of national security, overturning a lighter sentence from the lower court.

In another case in January, the Suwon District Court sentenced a former Samsung Display senior researcher to four years in prison. The researcher was convicted of illegally obtaining and using organic light-emitting diode trade secrets with the intention of transferring them to a Chinese firm, even though actual leakage or use of the data abroad was not confirmed.

Korea is seeing a sharp rise in technology leaks to foreign countries, according to police. Authorities said they handled 27 overseas tech leak cases in 2024, up from 22 in 2023 and 12 in 2022.

Last year, for the first time, foreign leaks made up more than 20 percent of all tech leakage cases. Among them, 11 cases involved state-designated “national core technologies,” the highest number on record.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY OH SO-YEONG, KIM BO-REUM [[email protected]]