Sharp Increase in Overseas Technology Leakage Arrests in First Half of This Year... China Tops the List

Number of Violations Up 50% Compared to Previous Year

The number of detected cases of overseas technology leakage significantly increased in the first half of this year.

Domestic and international technology leakage incidents. [Image provided by the National Police Agency]

According to the National Police Agency's National Investigation Headquarters on the 18th, the number of detected cases of overseas technology leakage increased by 50%, from 8 cases to 12 cases in the first half of this year. Among these, 10 cases involved leakage to China, while the United States and Iran each accounted for one case.

The National Police Agency has focused on eradicating overseas technology leakage crimes since last year and designated dedicated technologies for each investigation team according to the characteristics of each region, such as industrial complexes within their jurisdiction. In particular, in the first half of this year, they achieved the recovery of criminal proceeds totaling 470 million KRW from two technology leakage cases.

The proportion of recognized cases, such as intelligence collection, among all cases increased from 34.8% in 2021 to 43% last year. By crime type, there were 33 cases (70.3%) under the Unfair Competition Prevention Act, 9 cases (19.1%) under the Industrial Technology Protection Act, and 4 cases (8.5%) under the Criminal Act (breach of trust). By leaked technology, semiconductors accounted for 4 cases (34%), displays for 3 cases (25%), and others. The methods of leakage were electronic mail (13 cases, 29%), USB (9 cases, 19%), external hard drives (8 cases, 17%), and cloud storage (5 cases, 11%). By victim company, small and medium-sized enterprises accounted for 38 cases (80.9%), and insiders were the main perpetrators in 38 cases (80.9%).

Technology Leaks and Methods in the First Half of This Year.
[Image provided by the National Police Agency]

Looking at major detection cases, in January, five current and former executives and employees of Samsung SDI and SK On, including Mr. A, along with three corporations?S-Volt Korea (a Korean corporation), S-Volt China headquarters, and the parent company Jangseong Motor?were sent to prosecution on charges of violating the Industrial Technology Protection Act. The participants in the technology leakage took photos of electric vehicle blueprints and battery cell blueprints with smartphones while working at the company from 2018 to 2020, stored them, and provided the materials after moving to S-Volt Korea. S-Volt Korea is suspected of leaking national core technologies related to Samsung SDI and SK On batteries after establishing a research institute and office at Korea University Industry-Academic Cooperation Building in Seoul in June 2020. In April, Ms. B, a woman in her 30s and a former employee of SK Hynix, was arrested and sent to prosecution on charges of violating the Industrial Technology Protection Act. Ms. B printed and smuggled out about 3,000 documents related to key technologies for reducing semiconductor defect rates just before resigning in June 2022.

An official from the National Police Agency's Security Investigation Bureau said, “If you have suffered damage from technology leakage or witnessed suspicious cases around you, please report by calling 113 without an area code or through the online 113 reporting center, or visit the Industrial Technology Protection Investigation Team of the Metropolitan or Provincial Police Agency for consultation.”