A former Samsung Executive has been arrested for stealing company secrets and plotting a Chinese Chip factory.
According to prosecutors, a former executive of Samsung, whose identity remains undisclosed, has been accused of stealing company secrets with the intention of establishing a rival chip factory in China.
The individual is currently in custody awaiting trial, as stated by the Suwon District Prosecutors’ Office on Tuesday. The stolen information, deemed as “national core technology” under South Korean law, carries the potential to significantly impact national security and the economy if disclosed abroad.
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The Suwon District Prosecutors’ Office revealed that the suspect aimed to set up the chip factory in Xian, China, close to Samsung’s existing plant.
Confirming the detention, a spokesperson from the Suwon District Prosecutors’ Office informed AFP that the suspect had been held for a while but was formally charged on Monday.
The global race for advanced chip supplies has become a critical issue, with the United States and China engaged in a fierce competition for market dominance.
Samsung, renowned for its memory chips and smartphones, holds a substantial position in the industry, with its overall revenue amounting to roughly one-fifth of South Korea’s gross domestic product.
Authorities estimated that the Samsung factory blueprints and clean-room designs, which the accused allegedly attempted to steal from 2018 and 2019, would be valued at a minimum of 300 billion won ($236 million) for Samsung.
In a statement released on Monday, the prosecutors emphasized the severity of the crime, as it poses a significant threat to economic security and the domestic semiconductor industry, especially amidst intensifying global competition for chip production.
The semiconductor sector accounted for 16.5 percent of South Korea’s total exports as of 2022 and is considered a vital national security asset.
Additionally, prosecutors have charged six other individuals who were associated with the detained executive and believed to be involved in the theft.
The accused individual, having accumulated 28 years of experience at leading South Korean chip manufacturers, is recognized as a top expert in semiconductor manufacturing in the country, according to the prosecutors.
