Former Samsung executive arrested after getting caught red-handed with semiconductor technology

A former Samsung executive has been arrested for allegedly stealing semiconductor technology to start a company in China, according to the Seoul Metropolitan Police. The people arrested include Choi, the CEO of the Chinese semiconductor company Chengdu Gaozhen (CHJS), and Oh, who is in charge of process design.

Korean authorities (cited by the local media) said that this case has "shaken the foundation of economic security" and it's leading to a "potential weakening of national competitiveness".

Choi Jinseog, a former Samsung and SK Hynix executive, played a pivotal role in the development of DRAM memory chips at Samsung in the past. He also contributed to Samsung Foundry wafer technologies and received numerous internal awards for his efforts. After leaving Samsung in 2001, he joined SK Hynix, but many years later, his situation took a turn for the worse.

In 2020, Choi partnered with a local Chinese government to establish his semiconductor company, Chengdu Gaozhen. However, last year, his plans were derailed when he was accused of industrial espionage for stealing technology and factory designs from Samsung.

Choi intended to use the stolen information to set up his semiconductor facility in China with support from the local government. Additionally, it was revealed last year that Foxconn was considered as a potential key client for Choi's venture, though Foxconn denied any involvement in the trade secrets leak.

Reports from the Korean media also highlight the involvement of another ex-Samsung senior researcher, Mr. Oh, who played a significant role in the scheme. Choi recruited Oh and other South Korean semiconductor experts to steal Samsung's core memory semiconductor technologies and factory blueprints.

Both Choi and Oh were taken into custody last week, according to the Seoul Metropolitan Police Agency's Industrial Technology Security Investigation Unit. Several other employees who moved from Samsung and other domestic companies to Chengdu Gaozhen are also being investigated to determine their potential involvement in the leakage of trade secrets.

The leaked information, particularly related to the manufacturing process, is estimated to be worth approximately 4.3 trillion won (approximately $3.26 billion).