Suspect Accused of Leaking SK hynix High-Bandwidth Memory Technology Detained Prior to Flight Departure to China
South Korea Cracks Down on Semiconductor IP Theft
In a bid to safeguard its technological advancements, particularly in the semiconductor sector, South Korea has intensified its legal and institutional measures. The focus is on protecting small and medium-sized enterprises (SMEs), which are often vulnerable to intellectual property (IP) theft from larger corporations and foreign entities.
Key measures include the mandatory use of non-disclosure agreements (NDAs) during transactions, increased punitive damages for technology theft, and efforts to address information asymmetry that makes it difficult for victims to prove IP theft. The government is also actively coordinating to eradicate technology theft from SMEs, a chronic issue that threatens national competitiveness.
These efforts come in response to several high-profile cases of IP theft reported in South Korea’s tech sector. For instance, a former Samsung engineer was imprisoned for leaking technology secrets worth millions.
Recently, the Seoul Metropolitan Police Agency's Industrial Technology Security Investigation Unit made an arrest related to the theft of SK hynix's high-bandwidth memory (HBM) packaging technology. Suspect 'Mr Kim' was apprehended at South Korea's Incheon International Airport earlier this month.
Mr Kim is accused of attempting to smuggle SK hynix tech secrets to China, where Chinese rivals are reportedly interested in SK hynix's work on fine-tuning the production of HBM, a type of computer memory widely used in AI accelerators. The stolen data was focused on the backend packaging stage of HBM and hybrid bonding techniques.
Individuals found guilty of IP theft in the semiconductor industry in South Korea can face fines up to the equivalent of US$71,000 and up to 10 years in prison, making the penalties among the strongest deterrents in the world. The authorities are reportedly working to make these penalties even harsher to discourage IP theft in strategic sectors.
Reports suggest that other companies besides SK hynix may have also experienced similar tech leaks to China. Furthermore, there have been several other high-profile tech leaks to China involving rival companies like Samsung, according to the report.
South Korea is also enhancing its cybersecurity frameworks for semiconductor manufacturing plants, a critical front in protecting semiconductor IP. The government supports technological sovereignty and cyber resilience initiatives that involve collaboration between major semiconductor manufacturers and cybersecurity providers to prevent breaches in highly sensitive fabrication environments.
These measures collectively aim to protect innovations critical for national and industrial security.
References
- Korea's ministries unite to combat technology theft from SMEs (2025-08-01)
- Semiconductor manufacturing cybersecurity market and ecosystem (2025-08-07)
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