China linked to 75% of Korea semiconductor technology leak cases

The recurring pattern of technology leaks from South Korea to China, as detailed in court cases, highlights a persistent challenge in protecting intellectual property within the semiconductor industry. The article describes methods such as employees using hidden USB drives to capture images of manufacturing blueprints, which were then allegedly emailed to Chinese companies.

The relatively short average prison terms for those convicted of technology theft, often under three years, raise questions about the deterrent effect of current legal frameworks. For instance, an employee involved in leaking SK hynix's national core technology to China's CXMT received a suspended sentence, while an executive received 18 months. Only three out of 44 incarcerated individuals received terms longer than five years.

The concentration of these incidents, with 18 out of 24 cases and 82 out of 90 defendants linked to China, suggests a focused effort to acquire semiconductor expertise. These efforts intensified from the late 2010s as China accelerated its push into the semiconductor sector, with targets extending beyond traditional memory chips to include other advanced technologies.