Prosecutors Indict Former Samsung Electronics Employee for Leaking Confidential Information and Receiving $1 Million

Leaked Internal Secrets for $1 Million in Kickbacks
NPE Secured $30 Million Contract Using Confidential Data
Former Samsung Employee and NPE CEO Detained
Prosecution: "Crime Structure Uncovered Through Direct Investigation"

A former Samsung Electronics employee who leaked confidential patent information and received $1 million (approximately 1.46 billion won) in exchange has been indicted and detained for trial. The head of a patent management company (NPE) who used this information to secure a contract worth $30 million with Samsung Electronics has also been indicted and detained.

Seoul Central District Prosecutors' Office, Seocho-gu, Seoul. Photo by Jinhyung Kang

The Information Technology Crime Investigation Department of the Seoul Central District Prosecutors' Office (headed by Chief Prosecutor Kim Yunyong) announced on February 2 that it had indicted former Samsung Electronics IP Center employee, identified as A, and IdeaHub CEO, identified as B, both in detention. A has been charged with accepting bribes in breach of duty, breach of trust, and violating the Unfair Competition Prevention Act, while B has been charged with offering bribes in breach of duty and violating the Unfair Competition Prevention Act.

According to the prosecution, A is accused of receiving $1 million in exchange for leaking confidential patent information while employed at Samsung Electronics. B is accused of using this information to pressure Samsung Electronics during patent contract negotiations, ultimately securing a contract worth $30 million.

The prosecution stated that IdeaHub demanded a patent contract from Samsung Electronics and induced the company to review the need to acquire ownership and usage rights for the relevant patents. During this process, internal patent analysis materials from Samsung Electronics were delivered to IdeaHub. Based on this information, IdeaHub was able to analyze Samsung Electronics' strategy and secure a contract under favorable terms.

Since NPEs generate revenue solely through the exercise of patent rights without producing products themselves, identifying which patents a target company is interested in is crucial. The prosecution assessed this case as a typical example of "technology-related corruption," where a company's core internal information is leaked to external parties, causing significant losses to the company.

The prosecution stated, "Through a direct investigation, we have uncovered the structure of these crimes," adding, "We will continue to respond firmly to illegal activities by NPEs that threaten the survival of companies and cause critical damage to the national economy."