Technology Leakage in Semiconductors and AI: Over 60% Diverted to China

79 More Officers Assigned to Counter Technology Leakage Crimes

Investigation Teams Expanded at Seoul and Gyeonggi Nambu Police Agencies

A recent investigation found that, over the past five years, six out of ten cases of technology leakage overseas have been destined for China. In response, the police are strengthening their investigative units and taking measures to counter economic security crimes targeting key national technologies.

The National Office of Investigation of the National Police Agency announced on August 20 that it will add 79 specialized personnel dedicated to investigating technology leakage crimes, in order to respond more effectively to overseas leakage of critical national technologies. Personnel will be strategically reassigned, taking into account both the performance records of industrial technology security investigation units at local police agencies and regional investigative demand.

First, each regional police agency will designate an "Industrial Security Cooperation Officer," who will be responsible for providing support to corporations, universities, and research institutes that have suffered from technology leakage; protecting and supporting small and medium-sized enterprises; and conducting crime prevention and public awareness activities. The aim is to prevent technology leakage crimes from being underreported and to strengthen the system ensuring immediate linkage between crime intelligence and investigations. In the Seoul metropolitan area, where the headquarters of major corporations and R&D personnel are concentrated, as well as in regions with core strategic industries, additional specialized personnel will be assigned according to demand. In particular, the Seoul Metropolitan Police Agency and Gyeonggi Nambu Police Agency—where incidents are most heavily concentrated—will increase the number of dedicated investigation squads from one to two, and assign task forces for each technology sector to enhance responsiveness.

According to the National Police Agency, 103 cases of technology leakage involving sectors such as semiconductors and artificial intelligence (AI) have occurred overseas in the past five years. Among them, 66 cases (64.1%) were directed to China, followed by 8 to the United States, 7 to Vietnam, and 5 to Taiwan.

Specifically, the outflow of technology to China has shown an increasing trend, rising from 7 cases in 2021 and 6 cases in 2022 to 15 in 2023, 20 in 2024, and 18 last year. China does not only compete with South Korea in semiconductors, but also in AI, secondary batteries, and the defense industry—across the entire range of national strategic technologies. The threat extends beyond individual corporate losses and jeopardizes the nation's industrial competitiveness as a whole.

Last year, police apprehended 378 individuals in connection with 179 technology leakage cases, including 8 cases involving the leakage of core national technologies. This represented a 45.5% increase in the number of cases and a 41.5% rise in arrests compared to 2024. Of these, 33 cases involved overseas technology outflow. As of July this year, police had already apprehended 144 individuals in 68 cases, indicating that attempts at technology leakage threatening economic security are ongoing.

Crimes involving technology leakage are particularly challenging because: 1) the incidents are rarely exposed to the public; 2) determining the identity, novelty, and economic value of original versus leaked technology requires expert judgment; 3) a vast amount of digital evidence must be analyzed; and 4) cooperation with related domestic and international agencies is required. Investigations are more difficult and tend to take longer than ordinary cases, which is why the need to expand specialized investigative personnel has been continually raised.

The National Police Agency plans to reinforce its collaboration and information-sharing systems with related agencies—including the National Intelligence Service, the Ministry of Trade, Industry and Energy, the Ministry of SMEs and Startups, and the Korean Intellectual Property Office—strengthen expert consulting and technology evaluation procedures, and further enhance its professional capabilities alongside the personnel expansion.

An official from the National Police Agency said, "Once technology is leaked, the damage is extremely difficult to recover, and the impact can spread to the employment of citizens, the survival of companies, and the nation's overall competitiveness. We will bolster our economic security investigative capabilities to ensure timely and expert investigations into technology leakage crimes."

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