SEOUL, Dec. 20 (Korea Bizwire) – A former Samsung executive has been indicted for arranging the transfer of key semiconductor experts to a Chinese company in exchange for approximately ₩300 million ($207,000) in referral fees.

The Seoul Central District Prosecutors’ Office announced the charges on December 20, citing violations of the Employment Security Act and the Act on Regulation of Concealment of Criminal Proceeds.

The accused, identified as Mr. A, operated an unregistered overseas job placement agency and collaborated with Mr. Choi, another former Samsung executive who had previously been charged with leaking Samsung’s DRAM processing technology to a Chinese firm.

Mr. Choi founded the Chinese semiconductor company “Jin Semi” and its joint venture in Chengdu, where Mr. A served as an advisor.

Prosecutors allege that Mr. A facilitated the recruitment of Samsung’s key semiconductor personnel for Jin Semi, receiving 20% of their annual salaries as commission.

Using a shell company, he reportedly earned ₩300 million in introduction fees. One recruit, also a former Samsung employee, later became a key figure in technology leaks to Jin Semi.

This marks the first time an individual has been indicted in South Korea for facilitating talent transfers specifically aimed at leaking core technologies. The incident underscores the ongoing risks of industrial espionage in the global semiconductor race.

Legislation to penalize such recruitment schemes under the Industrial Technology Protection Act remains under deliberation in South Korea’s National Assembly. Prosecutors noted the case’s significance and highlighted their close cooperation with police during the investigation.

Additionally, Mr. A faces allegations of issuing fraudulent tax invoices, leading prosecutors to refer the case to tax authorities. Mr. Choi, who is already in custody, has been hit with additional charges for concealing illicit proceeds.

Kevin Lee (kevinlee@koreabizwire.com)