Samsung Electronics Key Personnel Consulting in China... Gang Causing Damage Worth 400 Million Won Arrested

A group involved in illegally mediating the transfer of Samsung Electronics' specialized personnel to a semiconductor manufacturer in China has been handed over to the prosecution.

On the 3rd, the Industrial Technology Security Investigation Unit of the Seoul Metropolitan Police Agency arrested and sent to prosecution Mr. B (64), the CEO of a consulting firm who arranged jobs at Chinese semiconductor manufacturer Company A, on charges of violating the Employment Security Act. Additionally, two other individuals, including the CEO of a headhunting firm who similarly facilitated the outflow of specialized personnel, were sent to prosecution without detention. Furthermore, 21 employees of Company A (3 detained, 18 not detained) were also sent to prosecution for leaking and illicitly using national core technologies.

The group is accused of mediating the transfer of Samsung Electronics' semiconductor specialists to Company A without registering the overseas paid employment placement business with the Minister of Employment and Labor since 2018. Mr. B, a former engineer at Samsung Electronics, operated a consulting company domestically after resigning. He is known to have approached key domestic semiconductor personnel based on his personal network and facilitated their job transfers by offering high salaries, housing allowances, and transportation expenses.

Investigations revealed that Mr. B also concurrently operated an overseas paid employment placement business by introducing domestic technical personnel to Company A and mediating their transfers. According to the Employment Security Act, overseas paid employment placement businesses must be registered with the Minister of Employment and Labor, but Mr. B ignored this procedure and received substantial fees for his mediation. Company A began constructing a DRAM semiconductor research and manufacturing plant locally in China using Samsung Electronics' technology and succeeded in producing pilot wafers within a short period. The estimated damage incurred by Samsung Electronics is approximately 430 million KRW.

A police official stated, "Unlike technology leaks, this case used a method of personnel outflow that is difficult to control and easy to evade regulations, indicating the need for stricter responses through legal amendments." He added, "Going forward, the police plan to respond more actively and strictly to such cases of technical personnel outflow while preparing for related legal revisions."