Prosecutors have formally requested arrest warrants for two former Samsung Electronics executives, alleging their involvement in transferring domestic semiconductor technology to a Chinese company. (Image courtesy of Yonhap)
SEOUL, Dec. 14 (Korea Bizwire) – Prosecutors have formally requested arrest warrants for two former Samsung Electronics executives, alleging their involvement in transferring domestic semiconductor technology to a Chinese company.
On Wednesday, the Information Technology Crime Investigation Division of the Seoul Central District Prosecutors’ Office filed an arrest warrant for a former Samsung Electronics executive, identified solely by the surname Kim. Kim, who departed the company in 2016 to join the Chinese startup ChangXin Memory Technologies, is accused of transferring crucial technology related to 16-nanometer DRAM.
Prosecutors have also sought an arrest warrant for an individual referred to only by the surname Bang, a former employee of a Samsung affiliate.
The prosecution asserts that the damages directly related to the unauthorized disclosure of the technology are in the trillions of won. However, ChangXin Memory, which successfully mass-produced nano-scale DRAM using the leaked technology, is estimated to have caused tens of trillions of won in actual losses by closing the technology gap with South Korean companies.
Beyond the two executives, prosecutors are broadening their investigation to include dozens of other individuals, including subcontractors, suspected of participating in the technology leak.
The National Intelligence Service (NIS) had previously detected the breach and asked prosecutors to initiate an investigation in May. However, the investigation faced delays as key individuals were located in China. The process gained momentum when Kim and Bang returned to South Korea in October.
A court decision on whether they will be detained is scheduled for December 15.
Kevin Lee (kevinlee@koreabizwire.com)
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