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The Information Technology Crime Investigation Division of the Seoul Central District Prosecutors’ Office (led by Kim Yoon-yong) stated on the 23rd that it had filed charges against five people, including former Samsung Electronics executive A, for allegedly violating the Industrial Technology Protection Act by leaking semiconductor technology developed by Samsung Electronics—world-first innovation—to a Chinese firm. Additionally, five former Samsung Electronics researchers were also charged without being detained.

The prosecution started its investigation in January of last year following the discovery of clues indicating that core semiconductor technology from Samsung Electronics had been leaked to China. This began in 2016 when A left Samsung Electronics to join Changxin Memory, a Chinese semiconductor company. B, a former researcher at Samsung Electronics, is accused of leaking the company’s ’10-nanometer-class DRAM process information’ by writing it down on 12 sheets of paper when he moved to Changxin Memory in September 2016. It was discovered that B manually copied around 600 steps of DRAM manufacturing processes and equipment details, fearing detection if he had copied files from a computer or taken photos with a mobile phone. The information B copied represented a core technology developed by Samsung Electronics as a global first, which was created through an investment of approximately 1.6 trillion Korean won over five years.

The prosecution concluded that the group had intentionally carried out technology leaks by setting up a dummy company, regularly moving their headquarters, and distributing guidelines such as “always be aware that the National Intelligence Service is watching.” It was also discovered that they had created operational procedures, including distributing a “four hearts” code to coworkers in case of emergencies like travel restrictions or arrests, to avoid being caught.

Changxin Memory achieved mass production of 10-nanometer-class DRAM in 2023, marking it as the first in China and the fourth worldwide, according to leaked technology. The prosecution estimated that Samsung Electronics’ sales drop alone due to this leak could have reached 5 trillion South Korean won last year, with the overall economic loss for the country expected to be in the tens of trillions of South Korean won.