Azernews.Az

by Aliyeva Alimat

In 2025, China was linked to more than half of South Korea’s technology leaks involving foreign countries, with semiconductor and battery technologies being particularly targeted, Azernews reports, citing Korean media.

According to the National Office of Investigation at the Korean National Police Agency, authorities uncovered 179 cases of technology leakage last year, marking a 45.5% increase from 2024. A total of 378 individuals were arrested, six of whom remain in detention.

Among the 179 cases, 33 involved attempts to transfer sensitive data abroad. China accounted for 18 of these cases, or 54.5%, followed by Vietnam with four cases, and the United States and Indonesia with three cases each.

The proportion of cases linked to China has fluctuated in recent years — rising from 50% in 2022 to 68.1% in 2023 and 74.1% in 2024, before dropping to 54.5% last year. Police emphasized that the decrease does not indicate a decline in attempts to send information to China but reflects a broader distribution of cases involving other countries.

High-tech sectors remained the primary targets. Of the outbound leaks, five involved semiconductors, four involved display technologies, three concerned secondary batteries, and two involved shipbuilding. These leaks focused on South Korea’s globally competitive technologies.

In one notable case last May, police arrested a former employee of a semiconductor materials supplier at Incheon International Airport. The suspect, surnamed Kim, allegedly attempted to smuggle chip-packaging technology related to high-bandwidth memory (HBM) to China. Three accomplices were later arrested and referred to prosecutors for indictment. HBM is a core component in AI semiconductors and was instrumental in SK hynix’s record-breaking earnings last year.

Other arrests included three individuals accused of transmitting blueprints for methanol fuel cells to foreign investors and a former battery researcher who allegedly stored proprietary technology on a personal laptop before moving to an overseas competitor.

Most cases involved current or former employees, who were responsible for 148 of the 179 incidents, or 82.7% of the total. Small- and medium-sized enterprises (SMEs) bore the brunt of the losses, with 155 affected companies accounting for 86.8% of cases, while large firms were involved in 24 cases. Analysts suggest that limited security measures and less favorable working conditions at smaller firms contributed to their vulnerability.

Authorities have also identified illegal brokers facilitating technology leaks. Last October, police froze 380 million won ($258,000) in assets belonging to a suspect who allegedly ran an unregistered job agency transferring skilled semiconductor workers in Korea to a Chinese company. The seized assets included real estate, bank accounts, and vehicles. In total, authorities recovered 2.34 billion won in criminal proceeds last year.

“Technology leakage is not just a blow to individual companies — it’s a serious crime that can irreparably damage national economic security,” a police official said. “We will continue to enforce a zero-tolerance policy.”

Interestingly, experts warn that as South Korea maintains its leadership in semiconductors, batteries, and other high-tech sectors, the country may increasingly face sophisticated attempts to acquire its intellectual property, making cyber and physical security measures more crucial than ever. Some analysts believe this trend could also accelerate South Korea’s push for stronger domestic manufacturing and tighter export controls to protect strategic technologies.