Former Samsung Electronics Manager Sentenced to 6 Years in Prison for Domestic Semiconductor Technology Leak

A former Samsung Electronics manager was sentenced to six years in prison in the appellate trial for allegedly leaking key domestic semiconductor technology to a Chinese competitor.

On the 23rd, the 8th Criminal Division of the Seoul High Court (Judge Kim Seong-soo) sentenced former Samsung Electronics manager Kim to six years in prison and a fine of 200 million won for violating the Industrial Technology Protection Act and other charges. This sentence is one year lighter than the seven-year sentence issued in the first trial.

The court dismissed all appeals made by the prosecution and other defendants, maintaining the same sentences for other co-defendants as those given in the first trial.

Former manager Bang from a cooperating company received a sentence of two years and six months, while another employee from a different cooperating company was sentenced to one year and six months.

Two other employees from the cooperating companies were given sentences of two years with a three-year probation and ten months with a two-year probation, along with community service orders.

Seriousness of Semiconductor Technology Leak and Reasons for Sentence Reduction

The court stated, "The damage to the victimized companies cannot be avoided, and it is a serious crime that adversely affects the nation, in which the defendant was the main perpetrator," and concluded, "As there is no possibility of damage recovery, a severe punishment corresponding to the crime is necessary."

However, it explained that considering Kim's lack of prior criminal history, the difficulties of re-employment in the country leading him to commit the crime by seeking employment with a Chinese company, and the fact that he did not directly participate in the leak of key technologies, a lower sentence than in the first trial was given.

Kim did not directly participate in leaking key technology.

Kim, who was a former manager of Samsung Electronics' technology team, became the vice president of a company established with Chinese capital, referred to as Company A.

Between February and September 2022, Kim and his accomplices were accused of illegally leaking semiconductor deposition equipment design technical materials from three companies where they worked, which were then utilized in the manufacturing of semiconductor equipment at Company A.

In particular, it was investigated that Kim leveraged the absence of a Chinese company developing Atomic Layer Deposition (ALD) equipment, a core manufacturing facility for semiconductor DRAM, to establish Company A with investments from a Chinese solar company.

It is known that the technical materials leaked by them amount to tens of thousands, and the total development cost of the victimized technical materials is estimated to be 73.6 billion won.

The National Intelligence Service detected these signs of technology leakage and requested an investigation by the prosecution in May 2023. The prosecution first detained and indicted Kim and two others, subsequently bringing additional related individuals to trial.

Image Source: Photo = Insight, Former Samsung Electronics manager Kim, who is accused of transferring core semiconductor technology to a Chinese company, and former employee Bang from a related company, appearing at the warrant substantive examination held at the Seoul Central District Court in Seocho-gu, Seoul, on December 15, 2023, afternoon / News1, unrelated stock photo / gettyimagesbank