Prosecutors Indict Additional Accomplice for Leaking Samsung Electronics Technology to China's CXMT

Seoul Central District Prosecutors' Office Indicts One Accomplice in Custody for Technology Leakage Case

Prosecutors have indicted an additional accomplice in connection with the case of a former Samsung Electronics employee who was sentenced to seven years in prison for leaking Samsung's core semiconductor technology to China's largest memory company.

On May 2, the Information Technology Crime Investigation Division of the Seoul Central District Prosecutors' Office (headed by Chief Prosecutor Ahn Donggeon) announced that it had indicted Jeon (55), a former Samsung Electronics engineer, on charges of violating the Act on Prevention and Protection of Industrial Technology Leakage, among others. Previously, on April 14, prosecutors secured Jeon's custody after a court issued an arrest warrant.

According to prosecutors, Jeon is accused of leaking and using information on Samsung's 18-nanometer DRAM process, which Samsung developed at a cost of 1.6 trillion won, after moving from Samsung Electronics to Chinese semiconductor manufacturer ChangXin Memory Technologies (CXMT). CXMT is the first DRAM semiconductor company in China, established by a local Chinese government with an investment of 2.6 trillion won.

Jeon's alleged crimes were discovered during an additional investigation into the case of Kim, a former Samsung Electronics executive, who was previously indicted and detained for illegally leaking Samsung's DRAM process technology.

Prosecutors suspect that Jeon played a role in the crime by leaking Samsung's process technology during his transition to CXMT and by recruiting key personnel to establish a DRAM semiconductor development plan for CXMT. He is also alleged to have joined CXMT through a shell company and to have taken thorough measures to evade investigation, such as spreading passwords in preparation for possible arrest.

Prosecutors stated, "We are also tracking another accomplice who leaked Samsung Electronics data through Interpol," and added, "We will respond strictly to technology leakage crimes that threaten the victimized company and the national economy."