On October 29, 2024, Chinese authorities confirmed the detention of a South Korean chip engineer on charges of espionage. This move has escalated the tech war between China and South Korea in the critical semiconductor industry.
According to reports from the South Korean news agency, the engineer, referred to as Mr. A, is in his 50s and resides in Hefei, Anhui Province, China, where the headquarters of major Chinese chip companies like ChangXin Storage Technology are located. Mr. A was arrested in December last year.
It was reported that Mr. A had worked at a semiconductor company in China, and Chinese investigative agencies believed he disclosed sensitive semiconductor information of the company to South Korea.
Both the South Korean news agency and the Chosun Ilbo reported that Mr. A was a former employee of Samsung Electronics.
Chinese Foreign Ministry spokesperson Lin Jian confirmed the news during a routine press briefing without disclosing further details. Lin Jian added that the South Korean Embassy in China had been notified.
A family member of Mr. A told the South Korean broadcaster KBS on Tuesday that he was detained by the Hefei City National Security Department in December. The family received an official notice stating that Mr. A was detained on December 18 on suspicion of espionage.
The family mentioned that Mr. A was held at a hotel and underwent five months of interrogation before the case was taken over by the Chinese National Security Department in May of this year. They also expressed concerns about his diabetic condition and the lack of access to medication.
Since the implementation of the revised Chinese counter-espionage law in July of last year, this is the first case of a South Korean national detained on espionage charges. The South Korean Ministry of Foreign Affairs stated that they are providing consular services to the engineer and his family.
The comprehensive revision of the Chinese counter-espionage law expanded the scope of enforcement, prohibiting the transfer of any documents, data, and information deemed “related to national security and interests” without permission.
Researcher Ben Forney from Seoul National University told the Financial Times, “Given that ChangXin Storage’s memory technology lags behind South Korea, the possibility of Mr. A benefiting from disclosing commercial secrets to South Korean competitors seems unlikely.”
Forney highlighted that South Korea is conducting a campaign to combat Chinese efforts to acquire Korean technology. Earlier this month, South Korea introduced new measures to discover and penalize actions of technology “leakage” to China. Out of the 12 cases registered by the Korean National Police Agency this year, 10 were linked to China.
Last month, Choi Jinseog, a former high-ranking executive of a Chinese chip manufacturing company operated by Samsung, was detained on new charges related to stealing chip processing technology. Since July 2023, Choi has been a focal point in an industrial espionage trial, underscoring South Korea’s efforts to combat industrial espionage activities. Choi denies any wrongdoing.
Jaemin Lee, a trade expert at Seoul National University, told the Financial Times, “Competition between South Korea and China in the chip sector is intensifying.”
South Korean companies in industries like electric vehicle batteries, steel, and petrochemicals have initiated legal actions against Chinese intellectual property theft, increasing efforts to combat dumping and patent infringement by Chinese competitors.
Last week, LG Chem, the parent company of leading battery manufacturer LG Energy Solution, filed a patent infringement lawsuit against the South Korean subsidiary of the Chinese battery material company Ronbay in Seoul.
Moreover, this action by China may hinder South Korean companies’ investments and operations in China. Previously, a senior executive of AnStaile Pharmaceutical Company was arrested by China on similar charges, leading to the evacuation of Japanese expatriates from China.