China detains South Korean on suspicion of espionage (updated)

Astellas Pharma

29/10/2024 09:17

(Recasts with confirmation, details of case)
       BEIJING, Oct 29 (Reuters) - China confirmed on Tuesday
the detention of a South Korean citizen suspected of espionage,
saying it had advised embassy officials, but without identifying
the individual or detailing the charges.
    It is the first time a South Korean national is being held
under an expanded counter-espionage law that took effect in July
last year.
    The case could deter investment and operations by South
Korean firms in the country's largest trade partner, following
the departure of Japanese expatriates after a compatriot working
for Astellas Pharma Inc  4503.T  faced similar charges.
    It centres on a former employee of Samsung Electronics
 005930.KS  who then worked at a Chinese chip firm, according to
the Yonhap news agency. 
    "The South Korean citizen was arrested by the Chinese
authorities in accordance with the law on suspicion of
espionage," Lin Jian, a spokesperson of the Chinese foreign
ministry, told a regular press briefing, without giving details.
    The Korean embassy in China had been notified, he added. 
    On Monday, Yonhap said the individual was suspected of
leaking semiconductor-related information to South Korean
authorities and was living in the city of Hefei in the eastern
province of Anhui when he was detained.
    Major Chinese chip companies, such as ChangXin Memory
Technologies, have their headquarters there.
    Since Washington began banning export of cutting-edge
foreign chips and chip-making equipment to China in 2020,
Beijing has invested billions of dollars in its domestic
semiconductor industry to achieve a goal of self-sufficiency.
    The tensions around the industry have made Beijing wary of
information leaks, which it views as a national security threat.
    The confirmation of the arrest also comes after tough
measures by Seoul to prevent what it sees as the theft of
semiconductor intellectual property (IP) by Chinese firms.
    Choi Jinseog, a former Samsung executive who ran a
chipmaking venture in China, was detained last month on fresh
accusations regarding the theft of chip processing technology.
    Choi had already been the subject of a high-profile
industrial espionage trial since July 2023 that underscored
South Korea's efforts to fight industrial espionage and slow
China's progress in chipmaking. Choi has denied any wrongdoing.

 (Reporting by Liz Lee, Eduardo Baptista, and the Beijing
newsroom; Editing by Muralikumar Anantharaman and Clarence
Fernandez)
 ((clarence.fernandez@thomsonreuters.com; +6568703861;
RM:clarence.fernandez.thomsonreuters.com@thomsonreuters.net))