Former Samsung Biologics Employee Who Leaked Trade Secrets to Lotte Biologics Given Suspended Prison Sentence

Two Years in Prison, Four Years of Probation

An employee who moved from Samsung Biologics to Lotte Biologics and leaked trade secrets has been sentenced to a prison term with a stay of execution.

On February 26, Presiding Judge Wi Eunsuk of the Incheon District Court Criminal Division 15, in a sentencing hearing, sentenced Lotte Biologics employee A, age 42, who had been indicted without detention on charges of violating the Unfair Competition Prevention and Trade Secret Protection Act and breach of duty, to two years in prison with four years of probation.

Overview of Samsung Biologics Plant 4 in Incheon Songdo. Samsung Biologics

Regarding the charge of violating the Act on Prevention of Divulgence and Protection of Industrial Technology, the court found A not guilty, ruling that the materials leaked by A did not constitute national core technology.

In this regard, Judge Wi explained, "The 'quality assurance standard operating procedure' (SOP) leaked by A merely organizes the purpose and general usage related to IT system operation, and does not include specific process procedures," adding, "The content does not appear to fall under national core technology as defined in the public notice of the Ministry of Trade, Industry and Energy."

On the sentencing factors, Judge Wi stated, "It is true that the defendant leaked materials related to trade secrets, and moreover, the timing of the leak was after the defendant had decided to move to Lotte Biologics," and added, "The defendant transferred the materials to his own laptop right before resigning and leaked them, so his culpability is not light."

However, the judge also noted, "No circumstances have been found that indicate the leaked trade secrets were actually used," and added, "Although the defendant disputes whether the materials constitute trade secrets, the court took into account that he is remorseful about his conduct itself."

A was indicted without detention on charges of leaking 57 items, including SOPs that constituted the company’s trade secret materials, when he moved from Samsung Biologics to Lotte Biologics in June 2022. The investigation at that time was initiated by a complaint filed by Samsung Biologics against four employees who had moved to Lotte Biologics, and prosecutors indicted only A among them. The remaining three were cleared of charges.

Immediately after the ruling, Samsung Biologics issued a statement saying, "Among the materials that A leaked without authorization, the IT SOPs are core documents that embody Samsung Biologics’ technology and operational know-how," and explained, "They directly affect productivity and quality in pharmaceutical manufacturing and are also essential for ensuring quality consistency."

In the contract development and manufacturing organization (CDMO) industry for biopharmaceuticals, IT SOPs are regarded as assets that are directly linked to a company’s credibility. In particular, for early-stage companies, such SOPs are considered indispensable know-how for implementing stable systems, and companies often devote considerable effort to securing them.

Samsung Biologics stated, "We are making every effort to protect the company’s core technologies and information assets," and added, "We will respond strictly, in accordance with laws and principles, to any attempt at leakage."