Former Samsung Electronics Executive Ahn Seung-ho Sentenced to 3 Years in Prison in First Trial for Leaking Trade Secrets

[Financial News] Former Samsung Electronics vice president Ahn Seung-ho, who was indicted on charges of receiving company trade secrets and using them to file lawsuits, has been sentenced to a prison term in the first-instance trial.
On the 11th, Criminal Division 28 of the Seoul Central District Court, presided over by Judge Han Dae-gyun, sentenced Ahn to three years in prison on charges including violating the Unfair Competition Prevention Act. He had been indicted and detained. However, the court did not revoke his bail.
A group leader in charge of patent applications at Samsung Display, who was indicted alongside Ahn, was each sentenced to three years in prison and ordered to pay an additional 530 million won. A former Samsung Electronics IP Center employee accused of leaking materials was sentenced to two years in prison. One defendant was acquitted.
The court first found Ahn guilty of receiving a confidential report that had been leaked by an employee of the Samsung Electronics IP Center. Referring to the report, the court stated, "Based on the evidence, the report contains material that Samsung Electronics compiled over several months through the analysis of multiple employees, involving considerable effort and cost," and added, "If the opposing side were to obtain it, they could gain an advantage over Samsung Electronics in negotiations or litigation. It is therefore risky information, and considering the internal patent system security measures at Samsung Electronics at the time, it meets all the requirements of a trade secret." The court went on to say, "He used trade secrets for personal gain, causing damage to the company and undermining fair business practices."
After leaving Samsung Electronics in 2019, Ahn founded a Non-Practicing Entity (NPE) and was indicted and detained on charges of conspiring with internal employees to siphon off key confidential data. Ahn had served as head of the Samsung Electronics IP Center from 2010 to 2018. He later used the confidential materials to file a patent infringement lawsuit, claiming that Samsung Electronics had unlawfully used patents for audio recording devices held by audio equipment company "Tekiya." Ahn was granted bail in 2024 and has since stood trial without being detained.
theknight@fnnews.com Jung Kyung-soo Reporter