Several South Korean media outlets reported that former Samsung executives were involved in stealing technology related to DRAM memory manufacturing in order to set up a business in China to manufacture such chips. The two former executives, both under the age of 60, were detained by South Korean police and charged under the Industrial Technology Protection Act and the Unfair Competition Prevention Act.

The men arrested are reportedly the CEO and chief engineer of a Chinese semiconductor company. Both previously held senior positions at Samsung. They reportedly maintained contacts with local Chinese officials and engaged in an illegal act of “technology transfer” in which China provided the financial resources needed to funnel technology into China.

These individuals reportedly provided China with over 600 important documents related to the DRAM manufacturing process and were involved in recruiting Korean engineers with higher financial incentives to work in China.

The China-based semiconductor firm has set up production lines similar to Samsung’s and began prototyping in April 2022, but has yet to enter mass production. South Korean police believe more than 30 Samsung employees have been relocated to China to work for the company.