“It takes less than a day after a press release announcing new technology for key engineers to receive recruitment offers. The situation has reached a critical point, making it increasingly difficult to retain core talent,” said a representative from a South Korean semiconductor equipment firm.
On Jan. 21, industry insiders reported a sharp increase in recruitment efforts by Chinese semiconductor companies targeting key personnel in South Korea’s semiconductor industry. While these efforts previously centered on major memory chipmakers such as Samsung Electronics and SK Hynix, they have now expanded to include emerging players in artificial intelligence (AI) semiconductors and equipment manufacturing, heightening concerns within the sector.
A senior executive at a domestic semiconductor company revealed, “We have become more cautious about disclosing new technology or data, requiring tighter internal security to curb talent and information leakage.” He recounted a recent incident, saying, “In less than a day after a technology announcement, our key personnel received recruitment offers, indicating significant exposure of our internal information.”
China’s focus remains strongest in the memory semiconductor sector, which is integral to its technological ambitions. Recently, the CEO of Chengdu Gaozhen (CHJS), surnamed Choi (62), and Oh (61), the company’s head of process design, faced prosecution for allegedly misappropriating state-designated core technologies of Samsung Electronics. These technologies, reportedly developed at a cost of 4 trillion won ($2.78 billion), were allegedly exploited for the company’s benefit. Separately, brokers accused of facilitating the transfer of Samsung’s key semiconductor engineers to China have also been indicted, with estimated damages reaching 4.3 trillion won ($3 billion).
On Jan. 19, the Suwon District Prosecutors’ Office, responsible for investigating defense industry and industrial technology crimes, indicted A (55), an operator of a Chinese-owned company in South Korea, and B (43), its design team leader. Both were charged with violating the Act on Prevention of Divulgence and Protection of Industrial Technology and the Unfair Competition Prevention and Trade Secret Protection Act. Prosecutors alleged the pair illegally utilized blueprints for cleaning equipment chambers and transfer robot designs belonging to SEMES, a Samsung Electronics subsidiary specializing in semiconductor equipment manufacturing. Additionally, they reportedly accessed Samsung’s process recipes, which contain detailed procedures for operating cleaning equipment.
Amid intensified recruitment efforts by Chinese firms, South Korean semiconductor giants such as Samsung Electronics and SK Hynix are strengthening measures to protect their workforce. Strategies include restructuring performance-based compensation systems to improve employee retention and implementing stricter internal policies to prevent leaks through retirees and former executives. Companies have also introduced tighter employment restriction agreements and enhanced monitoring of former employees.
However, smaller firms, such as fabless semiconductor design companies and those specializing in intellectual property (IP) or testing, face greater challenges. Lacking the financial resources to offer competitive incentives, these companies remain vulnerable to talent poaching.
Industry experts are urging stronger government intervention to address this growing issue. A representative from the Korea Semiconductor Industry Association stated, “The primary concern lies in the laxity of laws and regulations concerning industrial espionage and technology leakage. Given the extent of critical technology already compromised, stronger regulatory tools are essential to prevent further national losses.”
