South Korea charges 9 people for selling Samsung's foldable phone secrets to China

Sherlock, it seems to be a case of Techspionage.

South Korean prosecutors have filed charges against nine people and two companies for selling Samsung's intellectual trade secrets to a Chinese company, Bloomberg reported late Wednesday evening per a statement from prosecutors.

The illicit knowledge transfer included what Bloomberg described as organic light-emitting diode (OLED) "knowhow." Samsung makes its signature curve-edged phone screens from OLEDs. A soon it will be working that OLED magic for its upcoming foldable phone.

The specific companies involved are not named. But we do know that the Chinese entity that received the trade secrets is a screen maker. On the South Korean end, a supplier executed the scheme.

In addition to communicating "knowhow," the supplier reportedly sold 3D lamination and other equipment to the Chinese company, which violated its non-disclosure agreement (NDA) with Samsung. It went so far as to set up a fake company, and built the equipment at a different location than its main factory. Smart!

... Well, except for the fact that Korean officials caught loading up the equipment on a ship headed for China.

China is attempting to beef up its national intellectual property, as part of a campaign known as China 2025, which aims to increase China's role as a manufacturer, and not just an assembler. This campaign — including alleged Chinese theft of American intellectual property — is part of the impetus for Trump's trade war, because the US really, really does not want China to assume the role of IP-owning manufacturer.

It is apparently also a concern for South Korea, home of Samsung, which is seeing the Chinese phone company Huawei nip at the heels of Samsung's lead as the world's top smartphone seller.