Former Toptec CEO Sentenced to 3-Year Prison Term for Leaking Samsung's Proprietary Tech to China

The Korean Supreme Court has affirmed a three-year prison sentence for a former CEO of tech firm Toptec following his conviction for divulging Samsung Display Co.'s pivotal 3D lamination technology to Chinese firms in 2018.

The leaked technology, also known as 3D lamination technology, is crucial in crafting curved screen edges for Samsung smartphones. It took Samsung around 150 billion won (US$117.7 million) and six years of dedicated research by a team of 38 engineers to develop this groundbreaking technology.

The former CEO, along with other officials from Toptec Co., a reputable production equipment company, were indicted in April 2018 for leaking the edge panel technology's technical specifications and drawings to a separate company they established. Moreover, they unlawfully sold some of these documents to two Chinese companies.

Additionally, the defendants were charged with manufacturing 24 units of 3D lamination production equipment using the technical drawings provided by Samsung. Sixteen units were exported to Chinese firms, while the remaining units were intended for sale.

The former Toptec CEO and officials were found not guilty by a district court, which claimed that the leaked technology was not a trade secret. However, the ruling was overturned by the appellate court, and the ex-CEO was sentenced to three years in prison. The appellate court argued that the technology fell under the category of frontier technologies identified by the trade ministry. Therefore, it could not be considered public knowledge. Additionally, the appellate court concluded that the defendants had breached their duty to protect business secrets.

In a recent development, the Supreme Court upheld the three-year imprisonment of the former Toptec CEO, solidifying the verdict. Furthermore, two other executives from the company also received a finalized two-year prison term. It is noteworthy that Toptec itself has incurred a fine of 100 million won in this case.

In a separate incident, it has recently come to light that a former Samsung Electronics employee stole trade secrets related to the company's semiconductor chip manufacturing technology. This individual then attempted to utilize this stolen knowledge to establish their own semiconductor chip manufacturing technology in China.

These cases highlight the importance of safeguarding proprietary technology and ensuring its proper use.

Photo: Samsung Newsroom