Secret of Codename 'Hwangsan'… Testimony Emerges That "CEO Threatened Us to Steal Samsung Technology"

Testimony has emerged that the former CEO of ChangXin Memory Technologies (CXMT), China's top DRAM manufacturer, threatened Korean engineers who formerly worked at Samsung Electronics, demanding that they bring over Samsung's technology.

This is the first time that statements given to investigative authorities have revealed the reality of the "Samsung Electronics technology hunt" hidden behind the rapid growth of Chinese semiconductor companies.

Jeon, a former department manager at Samsung Electronics who was sentenced to seven years in prison in the first trial on charges of illegally leaking the 18-nanometer DRAM process technology—which Samsung developed as the world's first at a cost of 1.6 trillion won—was implicated.

According to Jeon's statement and other documents secured by the JoongAng Ilbo, David Wang, then CEO of CXMT, called in Korean engineers in 2016 and pressured them to bring all of Samsung's core semiconductor manufacturing recipes and equipment information, warning, "If you do not bring them, I will report you to the South Korean government."

At the time, CXMT executives systematically attempted technology theft, referring to Samsung Electronics by the codename "Yellow Mountain," or "Hwangsan," for security purposes.

Jeon claimed that behind such excessive pressure was a strong demand from the Chinese government.

Jeon testified, "At the time, the Chinese government said that if CXMT failed to secure the 18-nanometer technology, it would cut off investment," adding, "CXMT had no intention of developing it independently from the beginning and instead targeted Korean technology."

Indeed, right after its foundation, CXMT swept up key talent in units by offering core personnel from South Korea and Taiwan two to three times their existing salaries, and using this as a stepping stone, it rapidly rose to become the world's fourth-largest DRAM maker.

Legal circles forecast that the circumstances surrounding the direct involvement of Chinese management and the domestic criminal conviction will work to Samsung's advantage in future international technology disputes, such as filings with the U.S. International Trade Commission (ITC).

(Reported by Lee Hyeon-yeong | Video by Seo Byeong-wook | Design by Lee Su-min | Produced by SBS Digital News)
※ Please note: This article was translated by AI and may contain errors.