A former Samsung Electronics researcher has been sentenced to seven years in prison by the Seoul Central District Court for leaking sensitive semiconductor technology to a Chinese company. The 56-year-old man, identified by his surname Jeon, was found guilty of violating South Korea’s Industrial Technology Protection Act after unlawfully obtaining and using Samsung’s DRAM process technology.
Judges stressed that the breach involved national core technology, developed at an estimated cost of 1.6 trillion won ($1.2 billion), and inflicted losses not only on Samsung but also on the Republic of Korea.
Court documents revealed that Jeon joined China’s ChangXin Memory Technologies (CXMT) after leaving Samsung and helped draft a DRAM development plan for the firm. He also played a role in recruiting key personnel during the transition. Over six years, Jeon reportedly received about 2.9 billion won ($2.1 million) in compensation, including sign-on payments and stock options. CXMT, China’s first DRAM-focused semiconductor company, has been expanding rapidly with government support estimated at 2.6 trillion won, as Beijing seeks to reduce reliance on foreign chip suppliers.
Authorities argued that the leaked information could have accelerated CXMT’s development of high-bandwidth memory technology, which is widely used in artificial intelligence systems and high-performance computing. Samsung Electronics declined to comment on the ruling, while CXMT did not respond to requests for comment. The court emphasised the severity of the breach, noting that Jeon’s actions undermined both corporate and national interests, making harsh punishment unavoidable.
Jeon’s case adds to a growing list of industrial espionage disputes in South Korea’s chip sector. Similar incidents have involved leaks of OLED and semiconductor technologies, including a related case against another former Samsung employee surnamed Kim, whose conviction is under retrial after Supreme Court review. South Korean officials continue to treat semiconductor process technology as a matter of national security, underscoring its strategic importance. Meanwhile, CXMT has pressed ahead with expansion plans, announcing in 2025 its intention to raise 29.5 billion yuan through an initial public offering in Shanghai to upgrade production lines and boost technology development.