A former Samsung Electronics employee accused of facilitating the recruitment of key semiconductor researchers from South Korean tech giants Samsung Electronics and SK Hynix to a Chinese company has been arrested. The intermediary, identified as A, is alleged to have brokered these job transitions in exchange for financial compensation. The recipient of the recruits is Jin Semiconductor, a Chinese company founded by Choi Jin-seok, a former executive at both Samsung and SK Hynix, who is already in custody on charges of industrial espionage.
This arrest marks the first time an intermediary involved in such recruitment activities has been detained, signaling a pivotal moment in the enforcement of industrial espionage laws.
On Nov. 25, a senior judge at the Seoul Central District Court issued an arrest warrant for A, citing concerns over potential evidence tampering and flight risk. The warrant was requested by the Information & Communication Division of the Seoul Central District Prosecutors’ Office, based on an application from the Security Investigation Bureau’s technology security investigation unit at the Seoul Metropolitan Police Agency.
Authorities allege that A has been operating an unregistered recruitment agency since 2018, arranging the transfer of semiconductor researchers from Samsung and SK Hynix to Jin Semiconductor. According to investigators, A received payments for these transitions, including a percentage of the recruited employees’ annual salaries.
Jin Semiconductor, established by Choi Jin-seok, has been at the center of controversy. Choi, who previously served as an executive at Samsung Electronics and SK Hynix, is accused of attempting to transfer Samsung’s proprietary DRAM manufacturing processes, including 30-nanometer and smaller technologies classified as national core technologies, to China. Choi was previously arrested for allegedly trying to replicate Samsung’s semiconductor production facilities in China but was later released.
Investigators have disclosed that A facilitated the employment of researchers at Jin Semiconductor under agreements requiring them to return 20–30% of their annual salaries. Authorities estimate that A arranged transitions for at least seven researchers, with the actual number potentially reaching dozens.
This case represents the first application of the Employment Security Act to an intermediary in an industrial espionage case. Under South Korean law, individuals conducting overseas job placement services must obtain authorization from the Ministry of Employment and Labor. A is suspected of operating without such approval.
Law enforcement is now examining whether A acted in collaboration with Choi or other parties, including possible involvement by the Chinese government. Additionally, they are investigating whether the recruited researchers disclosed sensitive technologies after joining Jin Semiconductor.
