Tech war: South Korea on alert for technology leaks to China as US restrictions intensify

The tech leakage fears come amid Washington’s calls for South Korea and other allies to help restrain China’s ability to develop advanced semiconductor technology

Between 2016 and 2021, a total of 112 foreign intellectual property theft cases were reported in South Korea, with 36 related to ‘core national technology’

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A man stands in front of an advertising banner for Samsung Electronics in Seoul, South Korea, January 6, 2023. Photo: EPA-EFE

Published: 9:00am, 12 Feb 2023

South Korea is on the alert for potential know-how leaks to China, as US efforts to deny Chinese access to chip technologies intensifies, according to Korean experts, in a subtle shift that could cast a shadow over semiconductor supply chain cooperation between the two Asian neighbours.

In the latest intellectual property (IP) theft case, the Suwon District Prosecutor’s Office last month accused five suspects, including a researcher from SEMES Co, of sending confidential information related to semiconductor cleaning equipment to China.

Separately, the Korean Intellectual Property Office and Daejeon District Prosecutor’s Office announced last month that six people from three South Korean companies will stand trial for allegedly leaking core chip manufacturing technology to China.

The cases come amid Washington’s calls for South Korea and other allies to help restrain China’s ability to develop advanced semiconductor technology. The US has reportedly reached agreements with Japan and Netherland to restrict advanced chip equipment exports to China. Washington is also pressing Seoul to join the Chip 4 Alliance, which already has Tokyo and Taipei on board, but Beijing sees the group as a US plot to marginalise its role in the global chip supply chain.

Son Seung-woo, president of the Korea Institute of Intellectual Property, said China is seeking alternative routes to acquire semiconductor technology, such as mergers and acquisition of overseas assets and the poaching of foreign talent – on top of indigenous innovation – amid the tightening US restrictions.

“China is working on advancing its industries, and is attempting to acquire technologies from other countries with more advanced levels,” Son said. “Washington’s chip control measures on China caused a shortage of [advanced] semiconductors, which pushed Beijing to seek South Korean chip technology.”