Former Samsung executive faces indictment for alleged data theft – Times of India

South Korea has indicted an ex-employee of Samsung Electronics for allegedly leaking confidential information from Samsung to China. The former employee has been accused of stealing Samsung’s semiconductor chip-related technology and attempting to establish a chip factory in China, according to a report from Reuters.
In a statement released by the Suwon District Prosecutors’ Office, the individual was employed at SK Hynix as vice president, accused of unlawfully obtaining Samsung data to construct a factory in Xian, China between 2018 and 2019.
The local court has not yet confirmed the trial date for the indictment that was filed, and the defendant, who was arrested last month, is denying the allegations, according to the prosecutor. Prosecutors revealed that the accused worked for 28 years at South Korean chipmakers but did not disclose their identity.
In a statement, the prosecutor’s office said, “It’s a grave crime that could deal a heavy blow to our economic security by shaking the foundation of the domestic chip industry at a time of intensifying competition in chip manufacturing.”
According to prosecutors, a former Samsung executive tried to construct a factory about 1.5 kilometres away from Samsung’s chip manufacturing facility in Xian. This was after the executive established a semiconductor company. Unfortunately, the attempt to use Samsung’s data to build the new plant failed due to funding problems.
The stolen data has reportedly caused Samsung Electronics to suffer losses worth at least $233 million.
Six other individuals have also been indicted for their participation in the alleged crime. Among them is an employee of an inspection company who is accused of leaking the architectural plans for Samsung’s semiconductor factory.
Samsung and SK Hynix are two of the world’s top memory chip makers, having invested billions of dollars in chip factories located in China.
The chip sector in South Korea has been crucial to the country’s economy, so much so that President Yoon Suk Yeol has vowed his full support. He has referred to the industry’s competition as an intense battle, especially due to the tensions between China and the United States.