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Tech Leaks to China Skyrocket: What’s Behind Korea’s Technology Crisis?

Daniel Kim Views  

The Korean Police Department. / News1
The Korean Police Department. / News1

The number of arrests for overseas technology leaks threatening the foundation of South Korea’s economy has hit an all-time high this year. The leakage of national core technologies has surged fivefold compared to last year.

National Office of Investigation reported on Monday that there were twenty-five cases of overseas technological leaks from January to October, the highest number since the headquarters’ establishment.

Ten cases of overseas leakage of national core technologies directly impact national security—an increase of fivefold from just two cases last year. In 2021, there was a single case and four cases in 2022.

The proportion of overseas technology leak incidents, previously hovering around 10%, has risen to over 20% for the first time this year.

China recorded the highest number of leaks, accounting for eighteen out of the twenty-five cases. The U.S. followed in second (three cases), followed by Germany, Vietnam, Iran, and Japan (a case each). Display technologies comprised 32% of the cases (eight out of twenty-five), while semiconductors accounted for 28% (seven out of twenty-five).

The methods of leakage have also diversified: email and photograph (five cases); social media, USB storage units, and unidentified (nine total cases with three cases each); and personnel leaks, printing, and cloud-based lakes (six total cases with two cases each).

The Gwangju Police Agency arrested two individuals (including a former process team employee) in September for violating the Unfair Competition Prevention Act. The individuals allegedly leaked technology to China by providing photographs of display-related trade secrets to a co-conspirator for monetary compensation, knowing the information would be used for overseas sales.

Last year, the police established a specialized investigation system to combat technology leaks. It consists of technology teams tailored to specific companies and industrial complexes.

A spokesperson from the Security Investigation Bureau of the National Police Agency announced that they are bolstering their investigative staff to address the growing complexity and organization of overseas technology leak crimes. They are also exploring the use of advanced investigative techniques, such as undercover operations, and plan to collaborate with related agencies to enhance legislation, which includes developing regulations to penalize brokers.

Daniel Kim
content@viewusglobal.com

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