Indictment of a group of people who smuggled key domestic semiconductor technology and manpower to China

The Information Technology Crime Investigation Department of the Seoul Central District Prosecutors’ Office (Director Lee Chun) is investigating Chinese capital on charges of siphoning technical data and manpower from domestic semiconductor equipment manufacturing companies to China and using them to manufacture equipment (violation of the Act on Prevention and Protection of Leakage of Industrial Technology, etc.). It was announced on the 25th that Company A, a semiconductor equipment manufacturing company established with investment, and five people involved were indicted.

In 2022, Mr. Kim, Vice President of Company A, secretly transferred ‘semiconductor deposition equipment’ design technical data from a domestic company where he was working to a separate server and stole key technical data from employees working at two other domestic companies, and then transferred the data to Company A. He was arrested and indicted last January on charges of causing a job change, and was additionally indicted on this day. ‘Semiconductor deposition equipment’ is a core equipment that uses heat, plasma, etc. to coat the surface of a wafer (semiconductor material) with a very thin film to give it electrical properties.

In addition, Mr. Kim is accused of receiving a file he had photographed after transcribing the 18-nano DRAM processing technology, a national core technology of a large domestic company, in September 2016, and using it as development data for a Chinese DRAM semiconductor manufacturing company in November of that year.

It was found that Mr. Kim was involved in the leak of key technical data by encouraging employees working at other domestic semiconductor companies by saying, “I will guarantee more than double the salary and stock distribution of Company A.” It is reported that Mr. Kim has worked at the manager level at a major domestic and foreign semiconductor company since 1994.

Under Mr. Kim’s instructions, two members of the Bangmo equipment design team and Kim’s equipment design team members, who were working at a domestic semiconductor equipment manufacturer, were accused of leaking technical data, such as high-tech equipment design drawings, by transferring them to a separate server in September 2022. He was arrested and indicted between January and January of this year, and was additionally indicted on this day.

Two people, including an electrical team leader named Shin, who worked at another domestic semiconductor equipment manufacturer under Mr. Kim’s instructions, were also indicted without detention on the same day on charges of leaking semiconductor equipment and communication technology data, which were trade secrets, by transmitting them to a separate server.

It was discovered that the technical data stolen by these gangs was developed by the affected domestic companies at a total cost of 73.6 billion won. However, it is said that the development and commercial distribution were not completed as the prosecution discovered Company A’s crime while the equipment was being manufactured and developed.

The prosecution suspended the indictment of Mr. Jong (Chinese), the CEO of Company A, Mr. Kim, the Vice President of the Management Part, and Mr. Cheom, the Manufacturing Manager of the Management Part, on charges of participating in the crimes committed by Mr. Kim and others. This is a measure to ensure that they can be investigated immediately when they enter the country as they have refused to comply with the prosecution’s summons and are staying abroad.