Researchers Who Leaked Semiconductor Technology to China After Missing Promotion Receive Prison Sentences in Appeal Court

Pursued Joint Venture with Chinese Firm After Missing Promotion
Main Offender Sentenced to 2 Years and 6 Months in Prison
Accomplices Receive Harsher Sentences After Previously Getting Probation
"A Wake-up Call for the Industry to Prevent Similar Crimes"

Former researchers at a domestic company who conspired with a Chinese firm to leak semiconductor-related technology after missing out on a promotion have been sentenced to prison in the appellate court as well.

According to Yonhap News on June 19, the 1-1 Criminal Division of the Daejeon High Court (presiding judge Park Jinhwan) sentenced a former researcher, A (age 59), from a domestic company to two years and six months in prison, upholding the lower court’s verdict for violations of the Act on Prevention of Divulgence and Protection of Industrial Technology. Two accomplices who were also tried received heavier sentences than in the first trial: one was sentenced to one year and six months in prison, while the other was given two years in prison and a fine of 20 million won.

A and his accomplices stood trial for handing over key technical data, such as semiconductor wafer chemical mechanical polishing (CMP) process diagrams, to a Chinese company between 2019 and 2020. It was revealed that they accessed the company’s intranet using work computers and business cell phones to view confidential materials, then secured the data by photographing it with personal mobile phones.

The main perpetrator, A, was found to have agreed to jointly operate a semiconductor polishing agent (CMP slurry) manufacturing business with a Chinese company in June 2019, after failing to be promoted to an executive position in 2018. He continued to work at his company while managing and overseeing the establishment of polishing agent production facilities and business operations in China through messenger apps and other means. He was also involved in recruiting other company researchers to move to the Chinese firm.

The first trial court stated, "The crime nullified the enormous effort and expense the victim companies invested in research and development and gravely undermined fair competition in the field," and added, "It is a serious offense that also negatively impacted national industrial competitiveness." The court sentenced A to two years and six months in prison and gave the accomplices suspended sentences: two years in prison with three years’ probation and one year and six months in prison with two years’ probation, respectively.

Each of the defendants appealed, claiming the lower court’s ruling was unfair and arguing that the leaked materials did not constitute national core technology.

However, the appellate court dismissed the appeals from both the prosecution and A. It accepted the prosecution’s argument that the accomplices’ sentences were too lenient and handed down harsher penalties: two years in prison and a 20 million won fine for one accomplice, and one year and six months in prison for the other.

The appellate court judged that the crime was planned and organized, emphasizing the need to send a strong warning to the entire semiconductor industry, and determined that severe punishment was unavoidable. The court also rejected the defendants’ claim that the leaked materials did not constitute national core technology.

This content was produced with the assistance of AI translation services.