'Semiconductor Technology Leak to China' Former Samsung Electronics Manager Sentenced to 6 Years in Second Trial... Reduced by 1 Year

[Financial News] A former Samsung Electronics manager, indicted for leaking core semiconductor technology to a Chinese competitor, had his sentence partially reduced in the appeals trial. Consideration was given for cooperation with the investigation. 
Seoul High Court Criminal Division 8 (Presiding Judge Kim Seong-su) sentenced former Samsung Electronics manager Kim to 6 years in prison and a fine of 200 million won on the 23rd for charges including violation of the Act on Prevention and Protection of Industrial Technology Leakage. This is a reduction of 1 year from the 7-year sentence handed down in the first trial. 
Former employees of partner company A, Mr. Bang and another Mr. Kim, who were also indicted, received the same sentences as in the first trial, 2 years and 6 months, and 1 year and 6 months in prison, respectively. The suspended sentences for the remaining accomplices were also upheld as in the first trial.
Mr. Kim claimed in court that he did not instruct or conspire to use the related technology, but the appeals court did not accept this. However, it stated, "Considering that he was not involved in leaking Samsung Electronics' core business and cooperated with the prosecution's investigation, a lower sentence than the original was given."
The court noted, "The crimes committed by the defendants could ultimately harm national competitiveness," and emphasized, "Severe punishment is necessary to prevent similar crimes." It added, "Although the defendants admitted all charges and showed remorse in the appeals trial, these circumstances alone do not warrant changing the original sentence."
Mr. Kim was indicted for unauthorized leakage of 18-nano DRAM semiconductor process information, a national core technology of Samsung Electronics, and for using it in the product development of the Chinese semiconductor company ChangXin Memory Technologies (CXMT).
He was found to have leaked 7 key process technology documents related to semiconductor 'deposition (a technology of coating a thin wafer during semiconductor manufacturing)' and received hundreds of millions of won in bribes when he moved to the startup CXMT in 2016. There were also indications that he lured many technical personnel from Samsung Electronics and its affiliates with high salaries.
Mr. Bang was tried together with Mr. Kim for conspiring to hand over design technology documents of semiconductor equipment supplier A to CXMT.
In February, the first trial court handed down heavy sentences, stating, "This severely undermines healthy competition and wastes the enormous time and resources of the victim company," and "The damage to Samsung Electronics is expected to be enormous."  


scottchoi15@fnnews.com Choi Eun-sol Reporter