Minister Declares 16 Billion Won in Assets Using Bulkfinpet Technology [Intellectual Property is Competitiveness]

②The Importance of Intellectual Property Seen Through Bulkfinpet Technology
Asia Economy - Seoul School of Integrated Sciences and Technologies Joint Project
[Interview with Bae Dong-seok, Vice President of Intellectual Discovery]
Minister of Science and Technology Professor Lee Jong-ho, 10 Billion Won Royalty from Intel
Declared Assets of 16 Billion Won... A Case Reminding the Importance of IP

Minister Lee Jong-ho of the Ministry of Science and ICT. / Photo by Dongju Yoon doso7@

[Asia Economy Reporter Kim Bo-kyung] # Lee Jong-ho, director of the Semiconductor Research Center at Seoul National University and the first Minister of Science and ICT appointed by the Yoon Suk-yeol administration, is renowned for developing the world's first 'Bulk FinFET' technology. Bulk FinFET is a three-dimensional semiconductor device technology used in smartphones, tablet PCs, and other devices, which reduces the size of semiconductors while preventing performance degradation and improving power efficiency.

Director Lee developed this technology in collaboration with KAIST during his tenure at Wonkwang University, and it made headlines when he received about 10 billion KRW in royalties from Intel. Thanks to holding patents in Korea as well as the United States, he was able to secure rights to the technology. Unlike Intel, Samsung Electronics used the Bulk FinFET technology without paying royalties, which eventually led to a lawsuit that was settled through mutual agreement. This case is a clear example of the difference in perception of intellectual property (IP) value between domestic conglomerates and global companies. (Minister Lee reported assets exceeding 16 billion KRW from Bulk FinFET patent income, making him the wealthiest among the 19 prime minister and minister candidates of the Yoon Suk-yeol administration.)

Bae Dong-seok, Vice President of Intellectual Discovery (photo), highly praised the Bulk FinFET technology as "one of the greatest inventions since the founding of Korea." Intellectual Discovery is Korea's first IP-specialized company, established in 2010 through joint investment by the government and private sector. It purchases invention patents from domestic companies and universities to counter overseas 'patent giants' and conducts IP monetization businesses. The company, currently pursuing an IPO on the KOSDAQ market, has also been involved in litigation with a major U.S. mobile carrier that cited KAIST Professor Cho Dong-ho's Wi-Fi calling patent, securing a settlement of 55 billion KRW through negotiations.

Bae Dong-seok, Vice President of Intellectual Discovery

Vice President Bae stated, "At that time, Intel came directly to Korea to actively negotiate the payment of royalties for the Bulk FinFET technology," adding, "They paid 10 million USD in patent royalties and resolved the matter quickly." Had Samsung had a better understanding of IP, it would have paid the royalties and ended the issue.

According to Vice President Bae, advanced countries like the U.S., which recognized the importance of IP early on, even have hedge fund companies that invest in patent lawsuits. These companies provide funding for litigation and take a portion of the profits. Burford Capital, headquartered in New York, Chicago, and London, is known to have invested in the Bulk FinFET lawsuit with Samsung and received part of the settlement.

This case served as an opportunity to realize how large the market value of IP can become. Bae, who lectures on IP business models in MBA courses, said, "Professors and university students who have seen patent cases like Bulk FinFET and Wi-Fi calling technologies, which are worth hundreds of billions of KRW, have asked many questions about the market value of patents arising from their own R&D processes," adding, "Hearing that there is a market response naturally fosters an inventive spirit."

He emphasized, "Korea is a country that lives by technology," and stressed, "We need to devise a new national strategy, including incorporating intellectual property content into the high school curriculum."