(C) Digitimes

SEOUL – The South Korean National Police Agency (NPA) announced on Monday that it has apprehended 378 individuals involved in 179 cases of technology theft over the past year. Among those arrested, six individuals have been formally detained. The investigation reveals a sharp 45.5% increase in technology leakages compared to the previous year, with a significant focus on high-stakes industries such as High Bandwidth Memory (HBM) semiconductors.

China Dominates Overseas Leaks
Out of the 179 total cases, 33 involved the transfer of technology abroad. China accounted for more than half of these incidents (18 cases, or 54.5%), maintaining its position as the primary destination for South Korea’s stolen intellectual property. Other destinations included Vietnam (12.1%), Indonesia (9.1%), and the United States (9.1%).

While the proportion of leaks to China saw a slight decrease from its 2024 peak of 74.1%, authorities noted a diversifying trend, with leakages to Southeast Asian nations like Vietnam on the rise.

Focus on Leading-Edge Technologies
The theft was concentrated in sectors where South Korea currently holds a global competitive advantage:

Semiconductors: 5 cases (15.2%)
Displays: 4 cases (12.1%)
Secondary Batteries: 3 cases (9.1%)
Shipbuilding: 2 cases (6%)

Notably, the Seoul Metropolitan Police recently intercepted a former employee of a semiconductor equipment supplier at Incheon International Airport. The individual, identified as Mr. Kim, was attempting to flee to China with classified HBM semiconductor packaging technology. HBM is considered a cornerstone of the AI era and a key driver behind the recent record-breaking profits of major players like SK Hynix.

The Vulnerability of SMEs and Insiders
The report highlights a troubling trend regarding security infrastructure. An overwhelming 86.8% of victims were Small and Medium-sized Enterprises (SMEs), which often lack the robust security protocols found in large conglomerates. Furthermore, 82.7% of the crimes were committed by "insiders"—current or former employees with direct access to sensitive data.

In one instance, a former researcher was caught after saving "Secondary Battery Manufacturing Technology"—designated as a National Core Technology—on a personal laptop before attempting to defect to an overseas competitor.

Cracking Down on Illegal Brokers
The investigation also uncovered the emergence of professional brokerage firms. In October last year, police froze 380 million KRW in assets from a suspect who operated an unregistered recruitment agency. The suspect allegedly facilitated the defection of core semiconductor engineers to Chinese firms in exchange for massive commissions.

The NPA successfully recovered a total of 2.34 billion KRW in criminal proceeds last year. "Technology leakage is a grave crime that inflicts irreparable damage on national economic security beyond the losses of individual companies," a police official stated. "We will continue to apply a zero-tolerance policy to protect our national interests."

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