[Editorial] 'Economic Spies' Undermining the Future: Industrial Espionage Must Be Severely Punished

These former Samsung Electronics Co., Ltd. employees were brought to trial for allegedly leaking key semiconductor process technology after joining a Chinese semiconductor firm. The Information Technology Crime Investigation Division, Seoul Central District Prosecutors' Office, announced on the 23rd that it had indicted ten individuals—former executives and researchers at Samsung Electronics Co., Ltd.—for violating the Act on Prevention of Divulgence and Protection of Industrial Technology. The recipient of this technology, ChangXin Memory Technologies (CXMT), has grown to become China's leading DRAM manufacturer in just ten years.
According to prosecutors, the process of technology theft resembled a spy thriller. The theft, orchestrated by former Samsung personnel, was carried out systematically and according to a detailed plan from CXMT's early days in 2016 through 2023. Samsung Electronics Co., Ltd. has a regulation restricting employees from joining competitors for a certain period after leaving the company. To circumvent this, CXMT even established a fake fertilizer company.
During the process of stealing DRAM technology, a former Samsung researcher hand-copied information on the 600-step DRAM process into a notebook. Fearing detection by security systems if they used smartphones or computers, they opted for analog notes. The group also shared instructions such as, "Always act as if the National Intelligence Service (NIS) is watching," and, "If arrested, transmit four hearts (♥♥♥♥)." There was no sense of guilt about the theft from the outset, and their reckless actions—preparing even for possible investigations—are astonishing.
These individuals, once considered top talent at a leading Korean company, fell so far because reason was clouded by money. CXMT targeted key personnel, offering annual salaries two to four times higher than their previous pay. Some development managers received up to 3 billion won, and a full year's salary was sometimes paid upfront as a signing bonus.
Prosecutors estimate that Samsung Electronics Co., Ltd. lost approximately 5 trillion won in sales last year alone due to this technology leak. This figure only reflects the decrease in DRAM export volume for a single year; the actual long-term damage is expected to reach tens of trillions of won. By stealing DRAM process technology, CXMT captured production and export volumes that should have gone to Samsung Electronics Co., Ltd. and SK hynix. Most critically, as CXMT—once lagging far behind in technology—caught up with domestic firms, the future of the technology race has become uncertain. What these industrial spies sold for tens of billions of won was not just a single technology, but the nation's future.
Despite the enormous damage, swift and severe punishment for these individuals is difficult. Even though national core technology has been leaked, legal disputes may arise over whether the suspects' entire salaries should be considered criminal proceeds. If penalties are lighter than expected, controversy over lenient punishment could resurface. While current law allows for sentences of up to 15 years in prison, in practice, sentences of less than five years or suspended sentences have not been uncommon.
The number of overseas technology leakage cases surged from 12 in 2022 to 27 last year. The 'economic espionage' activities of industrial spies are eating away at the country's future. In this context, the Amendment to the Espionage Act—soon to be passed by the National Assembly of the Republic of Korea—which will allow the prosecution of industrial espionage involving foreign companies as espionage, is highly significant. The government must not only focus on post-incident punishment but also urgently implement follow-up measures to effectively prevent industrial technology leaks in advance. We must recognize that losing our technology means losing our future, and respond with a sense of crisis.