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A South Korean appeals court has sentenced a former Samsung Electronics employee to five years in prison for leaking the company’s chipmaking technology to a Chinese rival. The ruling, handed down on October 22, 2026, trims two years off the seven-year term he received at his first trial in April.
The former employee, identified as Jeon, spent nearly three decades at Samsung. In 2016 he joined ChangXin Memory Technologies, better known as CXMT.
The information he leaked concerned Samsung’s 18-nanometer-class DRAM process technology. DRAM is the working memory inside phones, laptops and servers, and making it well depends on tightly guarded manufacturing know-how.
At the core of the case was a document called the “Process Recipe Plan.” It covered approximately 600 manufacturing steps that Samsung had refined over time.
Samsung reportedly spent more than 1 trillion won and five years developing the technology. According to prosecutors, Jeon received about 2.9 billion won, or approximately $2 million, over six years. That figure included stock options.
Jeon acknowledged during court proceedings that he was involved in the leak.
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A wider case, and a hiring push
Jeon is not the only person facing charges. At least 10 individuals have been charged under South Korea’s Industrial Technology Protection Act in connection with the case.
The broader allegation concerns talent. CXMT has allegedly recruited at least 27 former engineers from Samsung and SK Hynix to help advance its technology.
The reduced sentence adds another wrinkle. Prosecutors and companies hoping for strong deterrence may view a cut from seven years to five as a softer signal than they wanted.
Compensation is the other side of the equation. Prosecutors put Jeon’s earnings at about 2.9 billion won over six years, a sum that shows how much a rival may be willing to pay for the right expertise.
For South Korea, the case tests how well its Industrial Technology Protection Act works in practice. With at least 10 people charged, the outcomes of the remaining proceedings will help show whether the law has real teeth.
