Seoul (GNP): South Korean prosecutors have indicted seven current and former executives and employees of a factory automation company over an alleged attempt to transfer Samsung’s protected industrial technology to China. The case involves Samsung Display’s liquid crystal display (LCD) manufacturing technology and Samsung SDS’s factory automation software.
On November 11, 2026, the Seoul Eastern District Prosecutors’ Office announced that seven individuals and the company had been indicted without detention. The accused face charges involving violations of industrial technology protection laws, unfair competition regulations and copyright legislation.
The investigation has raised concerns about the protection of South Korea’s advanced manufacturing technology and the security of valuable industrial information. However, the allegations will be examined through legal proceedings, and the accused have not been convicted.
According to prosecutors, four employees of the company attempted to obtain confidential production data from Samsung Display’s LCD manufacturing facility in Asan, South Chungcheong Province.
The incident reportedly occurred between September and December 2020, when the company was conducting inspections of production equipment scheduled for sale. During this process, the employees allegedly compressed and concealed important equipment log files in locations that would not be affected by routine data deletion.
Investigators said the employees intended to use the information to help relocate and modify manufacturing equipment for a Chinese display company and develop its factory automation system.
However, the attempt was reportedly discovered when Samsung Display engineers conducted additional inspections and identified the hidden files before they could be taken out of the facility.
The concealed files reportedly contained important manufacturing conditions for eighth-generation LCD panels. These included temperature, pressure and gas flow rates used during the production process.
Such information is considered valuable because it provides technical details about how advanced display panels are manufactured. South Korean authorities classify the relevant manufacturing technology as national core technology, meaning its unauthorised transfer overseas could threaten the country’s industrial competitiveness.
The alleged attempt involved three types of production equipment: photo equipment, sputtering equipment and chemical vapour deposition (CVD) equipment.
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The discovery of the hidden files prevented the alleged transfer from being completed, according to the prosecution.
The investigation also uncovered allegations involving Samsung SDS’s factory automation program source code.
Three former executives of the company, including two former chief executives and a former vice president, are accused of continuing to use Samsung SDS software without authorisation after their licensing agreement ended in May 2019.
Prosecutors said the company had originally acquired rights to the factory automation program under an agreement involving 7.4 billion won in November 2011. However, investigators allege that the former executives continued using the source code after the contract was terminated.
They are also accused of providing parts of the confidential code to a Chinese company and using the software in multiple industrial automation projects.
According to the investigation, the unauthorised use allegedly continued until March 2026, involving overseas projects worth approximately 32.1 billion won and domestic projects worth 4.8 billion won.
The case highlights the growing importance of protecting industrial technology as competition intensifies in the global electronics and manufacturing sectors.
Samsung Display’s manufacturing processes and Samsung SDS’s automation software represent valuable technological assets. If competitors obtain confidential production information, they could potentially reduce the time and resources required to develop similar manufacturing systems.
For South Korea, protecting these technologies is important not only for individual companies but also for maintaining its position in the international technology industry.
The prosecution has stated that it will respond firmly to crimes involving national core technologies and trade secrets.
The seven individuals and the company have been indicted without detention and will face legal proceedings over the allegations. The case includes separate accusations involving attempted technology transfer, unauthorised source-code use and the disclosure of confidential business information.
The investigation demonstrates how confidential manufacturing data can become a target during equipment inspections, business transactions and technology partnerships.
As the case moves forward, attention will remain on South Korea’s efforts to strengthen industrial security and prevent sensitive technology from being transferred to overseas competitors without proper authorisation.
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