One night, the lights in Samsung Electronics' semiconductor research building stayed on late as usual. It was that day when the hands of A, a core researcher in DRAM development at Samsung Electronics, grew unusually busy. On the monitor was "10-nanometer-class DRAM process information." A knew that the moment the file was copied or a USB was plugged in, everything could be over. A chose the most primal method. Pressing the tip of a pen, in tiny letters, A carefully began to transcribe line by line.
The DRAM manufacturing process spans 600 steps. This material, containing each process name, equipment information, and condition values, is called "PRP (Process Recipe Plan)" in the industry. It was the core of the core, not easily obtained with money or time. A wrote it down bit by bit whenever there was a chance.
What A used was an ordinary notebook issued to employees by Samsung Electronics. On the surface, it looked like work notes and naturally avoided suspicion from the security desk. The most dangerous information was exfiltrated in the most ordinary form. However, now special paper containing metallic material is used, allowing detection by security when taken outside.
After some time, A handed the notebook to B, a former Samsung Electronics Director General who in 2016 was working as head of development at ChangXin Memory Technologies (CXMT). Process technology in semiconductors is not an area that can be secured quickly by hiring talent, like design. It is an accumulation of technology that improves by running mass production for years, fixing errors and raising the production yield. The success or failure of a new semiconductor company is likewise determined not by design, but by process technology. A prosecutor said, "The leaked notebook is quite substantial," and "it was done in a very meticulous manner."
◇ 10-nanometer DRAM technology leaked after a 1.6 trillion won investment... spy movie level
According to investigative authorities on the 25th, the Seoul Central District Prosecutors' Office Information Technology Crime Investigation Division (Chief Prosecutor Kim Yoon-yong) on the 23rd indicted and detained five people, former executives of Samsung Electronics who were involved in 10-nanometer-class semiconductor development at CXMT, and indicted without detention five others, including heads of part-specific development.
The notebook that Samsung Electronics gave its employees for work ultimately became a "textbook" for making cutting-edge DRAM. Samsung Electronics invested 1.6 trillion won over five years to mass-produce 10-nanometer-class DRAM. Established in May 2016, CXMT received about 2.6 trillion won in investment from local governments under China's strategy to build memory semiconductor capabilities.
According to prosecutors, CXMT subsequently began full-scale DRAM development by additionally recruiting personnel from Samsung Electronics based on the leaked materials. In the process, it was found to have additionally secured technology related to SK hynix's semiconductor processes through a partner firm. The prosecution found that CXMT received core technology from SK hynix in return for supplying expensive semiconductor equipment to a partner firm where many former SK hynix employees worked.
In this way, CXMT succeeded in developing 10-nanometer-class DRAM in 2023, seven years after its founding. It is now also pursuing development of High Bandwidth Memory (HBM), which vertically stacks DRAM. Prosecutors believe that last year alone, Samsung Electronics' estimated revenue loss from this technology leak amounts to 5 trillion won, and the total damage to the national economy could reach tens of trillions of won.
Prosecutors identified A, who transcribed and leaked process technology, through handwriting analysis. Comparing CXMT materials with Samsung Electronics materials showed a 98.2% match.
A was in charge of recruiting engineers at CXMT. A systematically recruited those who had caused problems at Samsung Electronics and resigned, or those who retired after accruing years of service and were briefly serving as professors. CXMT offered extraordinary terms to secure talent. It paid two to four times the annual salary at the time of leaving Samsung Electronics, and promised up to 3 billion won to development head-level talent. Even just signing a contract came with a signing bonus equal to one year's salary, along with housing support and international school education for children.
Before joining ChangXin Memory, B was found to have evaded Samsung Electronics' noncompete clause with competitors and surveillance by the National Intelligence Service (NIS) by disguising employment at a Chinese fertilizer plant.
◇ Code of conduct "♥♥♥♥" if caught... staying in China despite a red notice
Prosecutors determined that they systematically committed technology leaks by setting up shell companies and frequently moving offices while sharing internal guidelines such as "Always act as if the National Intelligence Service is around you." It was found that they also prepared their own code of conduct, including sending "four hearts (♥♥♥♥)" to alert colleagues in emergencies such as an exit ban or arrest.
When entering China, they transited through a nearby city rather than the city where the plant is located, used WeChat for messaging, and Baidu services for email. A prosecution official said, "In other serious crimes, we sometimes see (codes of conduct), but such meticulous methods are unusual in technology leak cases."
A has been staying in China for 10 years. The Korean government has already invalidated A's passport, but it is said that the Chinese government has been extending the visa despite being aware of the Interpol red notice.
Korea and China signed an extradition treaty in 2000, which took effect in Apr. 2002, but cooperation from the Chinese side is known to be uneven even in ordinary cases. Prosecutors view the likelihood that China will cooperate with Korean investigative authorities in this case as low.
A prosecution official said, "From our standpoint, they are criminals who stole national funds, but from China's standpoint, they may have been helpful," adding, "The very situation in which their stay continues to be allowed despite transfer of custody being the principle is evidence that cooperation is not happening." The official added, "We will do everything to maintain the indictment so the defendants receive sentences commensurate with their crimes."