Three former employees of a domestic company have been indicted for allegedly stealing key semiconductor inspection technology and using it to produce products overseas. They reportedly left their jobs for foreign manufacturing companies, receiving double their previous salaries, and utilized the victim company's blueprints and technical data to create and supply prototypes.
The Technology Leak Special Judicial Police of the Intellectual Property Office and the Serious Crimes Division 2 of the Daejeon District Prosecutors' Office announced on October 14 that they have arrested and indicted an individual identified as A, while B and C were indicted without detention on charges of violating the Unfair Competition Prevention Act and the Industrial Technology Protection Act.
This case marks the first instance of the Technology Police arresting individuals for overseas technology leaks, with both agencies collaborating on warrant applications, searches, and securing the suspects.
From November 2023 to February of this year, A and the others are accused of conspiring with a foreign distribution company responsible for the victim company's local distribution to establish a foreign manufacturing firm and produce and supply products using the victim company's core semiconductor inspection technology.
The leaked technology pertains to 'probe card' technology, which inspects semiconductor chips for defects while in wafer form. This area has been dominated by companies in the U.S. and Japan, but the victim company has successfully developed equipment for high-bandwidth memory (HBM) testing and has supplied it to major semiconductor firms both domestically and internationally.
Investigations revealed that A and the others transitioned to the foreign manufacturing company in November 2023 at the suggestion of D, a former executive of the victim company, receiving double their previous salaries. They are believed to have supplied prototypes made using the victim company's technology to overseas clients in December of last year. The victim company estimates that if they lose their overseas market due to these actions, they could face an annual revenue loss of 40 billion won.
The investigation began in July of last year following intelligence from the National Intelligence Service. The Technology Police faced challenges in their investigation as the suspects were residing abroad, but they collaborated with the NIS to capture evidence that the foreign manufacturing company was utilizing domestic supply chains for procurement and design.
Based on this, in July of this year, they conducted a search of a domestic design firm and secured the victim company's blueprints and technical data. The materials had been altered to remove the victim company's name or were re-edited to appear as if they belonged to the foreign manufacturing company.
The Technology Police deployed specialized investigators with experience in semiconductor research and development to analyze the materials. They confirmed that the altered documents were based on the victim company's technology.
An Interpol Red Notice has been requested for D, who is evading investigation while residing abroad. The Technology Police plan to proceed with the investigation as soon as D is apprehended.
Jeong Yeon-woo, Deputy Director of the Intellectual Property Office, stated, "When a company's core technology is leaked abroad, it is irreversible, making it even more crucial to prevent technology leaks in advance. We will strengthen penalties for overseas technology leaks and push for system improvements to hold foreign companies involved in such crimes accountable."
The Technology Leak Special Judicial Police of the Intellectual Property Office and the Serious Crimes Division 2 of the Daejeon District Prosecutors' Office announced on October 14 that they have arrested and indicted an individual identified as A, while B and C were indicted without detention on charges of violating the Unfair Competition Prevention Act and the Industrial Technology Protection Act.
This case marks the first instance of the Technology Police arresting individuals for overseas technology leaks, with both agencies collaborating on warrant applications, searches, and securing the suspects.
From November 2023 to February of this year, A and the others are accused of conspiring with a foreign distribution company responsible for the victim company's local distribution to establish a foreign manufacturing firm and produce and supply products using the victim company's core semiconductor inspection technology.
The leaked technology pertains to 'probe card' technology, which inspects semiconductor chips for defects while in wafer form. This area has been dominated by companies in the U.S. and Japan, but the victim company has successfully developed equipment for high-bandwidth memory (HBM) testing and has supplied it to major semiconductor firms both domestically and internationally.
Investigations revealed that A and the others transitioned to the foreign manufacturing company in November 2023 at the suggestion of D, a former executive of the victim company, receiving double their previous salaries. They are believed to have supplied prototypes made using the victim company's technology to overseas clients in December of last year. The victim company estimates that if they lose their overseas market due to these actions, they could face an annual revenue loss of 40 billion won.
The investigation began in July of last year following intelligence from the National Intelligence Service. The Technology Police faced challenges in their investigation as the suspects were residing abroad, but they collaborated with the NIS to capture evidence that the foreign manufacturing company was utilizing domestic supply chains for procurement and design.
Based on this, in July of this year, they conducted a search of a domestic design firm and secured the victim company's blueprints and technical data. The materials had been altered to remove the victim company's name or were re-edited to appear as if they belonged to the foreign manufacturing company.
The Technology Police deployed specialized investigators with experience in semiconductor research and development to analyze the materials. They confirmed that the altered documents were based on the victim company's technology.
An Interpol Red Notice has been requested for D, who is evading investigation while residing abroad. The Technology Police plan to proceed with the investigation as soon as D is apprehended.
Jeong Yeon-woo, Deputy Director of the Intellectual Property Office, stated, "When a company's core technology is leaked abroad, it is irreversible, making it even more crucial to prevent technology leaks in advance. We will strengthen penalties for overseas technology leaks and push for system improvements to hold foreign companies involved in such crimes accountable."
* This article has been translated by AI.
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