Two former Samsung executives arrested for transferring semiconductor technology to China

South Korean police have arrested two former senior Samsung employees on suspicion of stealing technology for China, which caused the company damages amounting to more than 4.3 trillion won ($3.2 billion), Bloomberg writes, citing a statement from the department.

Image source: samsung.com

Those arrested assisted Chinese officials in the construction of a semiconductor plant, the Seoul Police Department said yesterday. One of the Korean former executives, a 66-year-old man surnamed Choi, hired chip experts in his country and, through a joint venture, transferred Samsung’s memory technology to partners. Law enforcement agencies did not name the time and place of the alleged crime in China. But some of the details match those of a case that came to light in 2023, as sanctions strained relations between Beijing and Washington. Then, one of the Samsung executives was detained on suspicion of stealing drawings; according to investigators, he was trying to recreate an entire semiconductor production plant in China.

South Korea is a world leader in memory chip production and a key ally of Washington as it seeks to curb China’s technological development. The latest incident is related to the Korean-Chinese joint venture Chengdu Gaozhen – Choi was its leader, and he was assisted by a plant designer named Oh. Last year, Korean specialists assisted the Chinese authorities in the production of DRAM chips using 20 nm technology. This not only damaged Samsung, but also “weakened the country’s competitiveness in the global chip war,” law enforcement officials said. The police also added that the work of the Chinese enterprise was suspended, but further technology leaks continue to be investigated. Samsung declined to comment.