Insiders Behind 9 of 10 Korean Tech Leak Cases This Year

68 of 77 Cases Through August Involved Current Employees Smaller Firms Account for 87% of Victims Leaks Spread Beyond Chips to Machinery, Autos

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By Park Hyung-yoon and Lee Seung-ryungmanis@sedaily.com, yigija94@sedaily.com
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Seoul Metropolitan Police Agency's Industrial Technology Security Investigation Unit. Yonhap News - Seoul Economic Daily Politics News from South Korea
Seoul Metropolitan Police Agency's Industrial Technology Security Investigation Unit. Yonhap News

Nine out of 10 industrial technology leak cases uncovered in South Korea this year were committed by insiders — executives, employees and researchers who worked for the victim company at the time of the offense. Nearly 90% of the damage was concentrated at smaller companies, prompting calls to strengthen personnel security at firms with weaker protection capabilities.

A total of 77 industrial technology leak cases were referred to prosecutors through August this year, according to data submitted by the Korean National Police Agency to Rep. Kwon Young-jin of the People Power Party, a member of the National Assembly's Public Administration and Security Committee. A total of 162 people were referred in those cases.

Insider leaks accounted for 68 cases, or 88.3% of the total, while outsiders were responsible for just nine cases, or 11.7%. Police classify insiders as executives, employees and researchers who belonged to the victim company when the leak occurred. Former employees and workers at partner firms are counted as outsiders. That means most technology leaks detected this year were carried out by people inside the company at the time.

The share of insider leaks has remained high in recent years. Insiders were behind 125 of 149 cases in 2023, or 83.9%, 102 of 123 cases in 2024, or 82.9%, and 148 of 179 cases last year, or 82.7%. This year the figure rose to 88.3%.

The damage was concentrated at smaller companies. Of the 77 cases through August, 67 occurred at small and mid-sized firms, or 87.0% of the total. Large companies accounted for 10 cases. Last year, small and mid-sized firms accounted for 155 of 179 cases, or 86.6%.

The targets were not limited to advanced industries such as semiconductors and displays. Through August, machinery recorded 12 leak cases, twice the six cases in semiconductors. Automobiles and railways accounted for six cases, while electrical and electronics and information and communications technology and software each recorded five. Shipbuilding and biotechnology each saw three cases.

Nine cases involved technology taken overseas through August. By sector, semiconductors and machinery each accounted for two cases, while automobiles and railways and shipbuilding each had one. Three overseas leaks occurred in other categories, including robotics, chemicals and other business information.

The government is also stepping up investigative capacity. In August, the Korean National Police Agency added 79 officers dedicated to technology leak crimes and decided to expand the industrial technology security investigation units at the Seoul Metropolitan Police Agency and the Gyeonggi Nambu Provincial Police Agency. Police said technology leak cases last year totaled 179, involving 378 people, up 45.5% and 41.5% respectively from a year earlier. Overseas leaks reached 33 cases.

"The fact that nine out of 10 technology leaks are caused by insiders means corporate security must cover the management of people, not just technology," Kwon said. "Small and mid-sized firms, which account for a significant share of the damage, may have weak technology security and personnel management because of cost constraints, so the government must pair stronger investigative capacity with effective support."

Original reporting by Park Hyung-yoon and Lee Seung-ryung for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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