Red Alert in Companies . “Technology Thieves” on the Run

Rapidly Increasing Damage—

Pantech, a cellular phone manufacturer, had to relieve tensions in their hearts after the prosecutors announced the results after investigating into the case yesterday.

Seven industrial espionages were related to this case, and the company had almost suffered a 4.5 trillion won loss.

It turned out that under the condition for a high annual salary from a foreign firm, engineers, including a Mr. Yang, leaked the new software model made for exportation in which 20.6 billion won was invested just last year for research and development.

The party was caught after drawing out the detailed designs of a semiconductor-measuring instrument made by S Company, a venture enterprise, to Japan on May 12.

Last month, an employee of a J Company, a semiconductor equipment company, was caught trying to get away with the key technology for LCD manufacturing equipments under the condition of transferring to an overseas competitor.

An executive of H Company, a semiconductor manufacturer, was caught trying to take out 20 gigabytes worth of design drawings in January.

High Technology Are Targets—

Industrial espionage is concentrated in the semiconductor, display, and cellular phone fields where the domestic firms are securing international competitiveness.

Especially, cellular phone technology, where late starters including China are following up, is becoming the central target.

The National Intelligence Service pointed out, “The reason that the technology gap with China has shrunk to two years in the cellular phone field is because of the technology leakage and transfer of key human resources.”

Taiwan and other developing countries are following right behind in the Plasma Display Panel (PDP) and the LCD field, and Korea is in desperate need of technology security.

Block the Leakage of Key Technology—

Jusung Engineering, which manufactures equipments for semiconductors, recently sealed all the USB (Universal Serial Bus) ports in the company’s desktop computers. This is to completely prohibit copying data using USB memory devices.

Samsung Electronics and Hynix Semiconductor are also restricting the use of USB ports in the company’s computers.

To prevent CDs or notebook computers from leaving the company without the department head’s permission, Samsung Electronics is operating an X-ray scanner at its main building in Seoul Joong-gu and other offices all over the country. Employees and visitors of the Suwon and Kiheung Research Institutes have to put sealing stickers on their camera-cellular phones at the entrance.

Samsung Electronics has also placed a system which automatically cuts off e-mail carrying technology-related terms or abbreviations to block information leakage through the e-mail.

Pantech is also restricting the entrance of camera attached-cellular phones into its Kimpo factory.

Noh Hwa-ook, chairman of the Industrial Security Council in the electronics field, said, “To prevent the leakage of advanced technology which deals fatal blows to the national economy and to the companies, strengthening the companies’ security is in immediate demand.”

Tae-Han Kim Jin-Suk Huh freewill@donga.com jameshuh@donga.com