South Korean prosecutors have indicted 10 former Samsung Electronics (005930.KS) employees for leaking 10-nanometer DRAM process technology to China's ChangXin Memory Technologies, enabling the Chinese company to emerge as the world's fourth-largest semiconductor firm. The value of leaked national assets is estimated at several trillion won.
Using the stolen technology, ChangXin successfully began mass production of 10-nanometer DRAM in 2023, becoming only the fourth company globally to achieve this milestone. The Chinese firm is now pursuing an IPO next year with an anticipated market capitalization of 60 trillion won.
Samsung invested 1.6 trillion won over five years to develop the technology, which was leaked in exchange for salaries of up to 3 billion won annually and compensation packages two to three times higher than domestic levels. Under current industrial technology protection laws, penalties are limited to approximately five years imprisonment, prompting business groups to call for new economic espionage legislation.
Samsung Bets on Future Mobility with 2.6 Trillion Won Acquisition
Samsung Electronics is acquiring the ADAS (Advanced Driver Assistance Systems) business of Germany's ZF, the world's second-largest auto parts supplier, through its subsidiary Harman for approximately 2.6 trillion won ($1.9 billion), positioning itself in the software-defined vehicle (SDV) market.
Harman, the global leader in automotive digital cockpit systems, will now offer autonomous driving solutions, accelerating its "home-to-car, car-to-home" ecosystem strategy. This marks Samsung's second trillion-won-scale M&A this year, following the acquisition of Flect for 1.5 billion euros.
77% of Experts Say Korea's High-Tech Regulations Exceed US, Japan, China
A Korea Employers Federation survey found that 76.7% of experts believe South Korea's regulations on advanced and emerging industries are stricter than those in the United States, Japan, and China. Some 61.6% of respondents said transitioning to negative regulation is urgent.
While 46.6% negatively assessed the National Assembly's legislative activities regarding regulatory reform, 58.5% expressed positive expectations for the government's deregulation policies. Regarding calls to ban early morning delivery services, 78.5% opposed such restrictions, indicating consumer convenience and job protection remain priorities.
Individual Investors Exit Korean Stocks for US Markets
Bank of Korea analysis shows individual investors net sold 23 trillion won in domestic stocks between July and October this year while net purchasing $10.3 billion (approximately 15.28 trillion won) in overseas stocks.
Even during September and October, when the KOSPI rose 28.9%, individuals continued selling domestic stocks while concentrating on the S&P index, which gained 5.9%. The central bank attributed this to persistently low long-term return expectations for the domestic market, emphasizing the need for corporate governance improvements and enhanced shareholder returns.
Doosan Sells Robotics Stake to Fund SK Siltron Acquisition
Doosan sold an 18.05% stake in Doosan Robotics (454910.KS) for 947.7 billion won to secure funding for its SK Siltron acquisition. Completing the acquisition would give Doosan control of critical links across the semiconductor ecosystem, from design and wafer manufacturing to packaging materials and testing.
SK Siltron's enterprise value is estimated at 4 trillion won, with the 70.6% stake sale expected to reach 2-3 trillion won.
Global Disruption Opens Opportunities for Korea
Jung Sang-jin, head of Korea Investment Trust Management, said international turmoil is opening a "massive window of opportunity" for the Korean economy. As global supply chains restructure amid efforts to counter Chinese manufacturing, Korean industries including semiconductors, shipbuilding, defense, nuclear power, and electrical equipment are seeing structural elevation in global standing.
Operating profit of KOSPI-listed companies is forecast to approach 420 trillion won next year, significantly exceeding historical highs. Growth in foreign tourists driven by Korean cultural exports is also supporting domestic consumption recovery.
