Seoul prosecutors have arrested and indicted three former employees of Samsung Electronics for allegedly leaking advanced nanoscale DRAM process technology to China's Changxin Memory Technologies (CXMT). The Seoul Central District Prosecutors' Office estimates the breach caused Samsung revenue losses of approximately KRW5 trillion (US$3.56 billion) in 2024 alone. The accused now occupy key research and development positions at CXMT.
According to IT Chosun and the Korea Economic Daily, the three individuals were charged under the Industrial Technology Protection Act for unauthorized transfer of proprietary technology. Yang is reported to lead CXMT's Phase II development project, Shin manages a team within CXMT, and Kwon holds a chief officer role. All formerly worked in Samsung's R&D division before joining CXMT, where they allegedly provided sensitive information to facilitate Chinese semiconductor advancements.
Ex-Samsung officials involved in early CXMT projects
Prosecutors disclosed that CXMT's formation included the recruitment of other former Samsung staff, notably ex-department head Kim and researcher Jeon, who faced earlier indictments in January 2024 and May 2025, respectively. Kim received a seven-year prison sentence for involvement in the initial technology leak. Investigations revealed that Kim acquired proprietary technical data with assistance from Samsung insiders to support CXMT's initial DRAM development phase.
The stolen technology primarily concerned Samsung's cutting-edge 10-nanometer-class DRAM manufacturing process, which was developed following an investment of around KRW1.6 trillion. Subsequent CXMT development efforts, including those led by the newly indicted Yang, reverse-engineered Samsung's designs, validating and testing the technology to establish CXMT as China's first and the world's fourth enterprise to mass-produce 18-nanometer DRAM chips in 2023.
Prosecutors estimate significant economic impact
South Korean authorities estimate the financial damage to Samsung from these activities exceeds KRW5 trillion in lost sales for 2024, with potential long-term economic consequences amounting to tens of trillions of won. Investigations also revealed that the indicted individuals draw annual salaries at CXMT that are three to five times higher than their previous earnings at Samsung, reaching billions of won per year.
Prosecutors characterize the case as the largest industrial technology theft in South Korean history, highlighting the broader implications for national economic security beyond the direct corporate losses. Seoul prosecutors have pledged rigorous enforcement actions to deter similar violations and secure proprietary technologies critical to the country's semiconductor industry.
Article edited by Jerry Chen
