Two former Samsung Electronics executives who attempted to transfer semiconductor core technology, into which Samsung invested 4 trillion won in development costs, to China for local mass production have been indicted while in custody.
On the 27th, the Information Technology Crime Investigation Division of the Seoul Central District Prosecutors' Office (Chief Prosecutor Andong Geon) announced that it had indicted two individuals, Choi (66), CEO of a Chinese semiconductor company, and Oh (60), head of development, on charges of violating the Industrial Technology Protection Act and the Unfair Competition Prevention Act. Both had previously worked as key researchers at Samsung Electronics. In particular, Choi was regarded as a top expert in the domestic semiconductor manufacturing field, having worked for over 30 years, including serving as an executive at Samsung Electronics and later as vice president at SK Hynix.
Choi and Oh are accused of illicitly using DRAM semiconductor process technology classified as a national core technology. While global semiconductor companies typically take 4 to 5 years to develop 20-nanometer DRAM semiconductor process technology, they succeeded in developing it in just 1 year and 6 months and became the second in China to produce DRAM pilot wafers. During this process, they also received an investment of 400 billion won from a local Chinese government. Had they succeeded in final mass production, the damage was expected to reach at least tens of trillions of won.
After the case was transferred from the Seoul Metropolitan Police Agency, further investigation by the prosecution revealed that Choi received shares worth 86 billion won in the Chinese semiconductor company and obtained 1.8 billion won in criminal proceeds under the guise of remuneration. It was also confirmed that the Chinese semiconductor company established by the defendants systematically planned and executed the crime, leading to additional charges against the company.
A prosecution official stated, "We will actively and strictly respond to technology leakage crimes that threaten victim companies and the national economy."
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