Samsung’s “Tri-Fold Phone” Core Technology Leaked to China...Global Strategy in Jeopardy

Samsung’s ambitious next-generation smartphone project - the tri-fold phone - has suffered a major blow as its core multi-fold display technology was leaked to a Chinese company. The incident has raised alarm bells over Samsung’s long-held technological advantage in the global smartphone market, built through years of intensive R&D investment.

“NorthKoreaKid” ID Used in Espionage Scheme

The Seoul Metropolitan Police Agency’s Industrial Technology Security Investigation Unit raided Samsung Display’s Asan Campus on October 1. Investigators found that two employees, identified only as Mr. Seo and Mr. Kim, had sold the multi-fold display technology to Chinese display maker HKC for about 6.5 billion won (US$4.7 million).

Internal investigations revealed that the pair used an online alias - “NorthKoreaKid” - to leak the classified information through specific web channels, further deepening the shock.

Strategic Model Leak Hits Ahead of APEC Showcase

The leaked technology forms the backbone of Samsung’s upcoming “Galaxy Z Tri-Fold”, which can fold twice, unlike existing foldables that bend only once. The design offers a completely new user experience and represents Samsung’s next leap in mobile innovation.

Samsung had planned to unveil the tri-fold phone at the upcoming APEC Summit in Gyeongju, hoping to impress global leaders with its innovation. However, the leak threatens to erode the company’s technological gap with Chinese rivals like Huawei, potentially nullifying years of competitive advantage.

A Blow to Samsung’s Premium Strategy

Priced at around 4.2 million won (US$3,000), with an initial production run of just 50,000 units, the Galaxy Z Tri-Fold was never intended for mass sales. Instead, it symbolized Samsung’s brand prestige and leadership in display technology. Now, analysts fear the breach could disrupt Samsung’s high-end market strategy and damage investor confidence.

A Pattern of Repeated Leaks

This case adds to a troubling pattern of Samsung technology leaks to China in recent years.

In 2023, a senior engineer in Samsung’s memory division was sentenced to six years in prison for leaking 18-nanometer DRAM process technology to Chinese chipmaker CXMT in exchange for hundreds of millions of won.

In 2024, a former Samsung Display senior researcher received a five-year prison term for leaking OLED manufacturing technology worth an estimated 241.2 billion won to a Chinese company.

The latest multi-fold leak appears to be part of this ongoing “chain reaction” of industrial espionage. “China has been developing tri-fold prototypes,” one industry insider said, “but durability issues made commercialization impossible. This leak could wipe out Samsung’s decade-long lead overnight.”

Security Is the New Competitive Edge

Samsung Display stated that it is “still verifying the facts,” denying both the 6.5 billion won figure and claims that multi-fold technology was compromised. Nonetheless, industry sentiment remains skeptical, emphasizing that robust security systems are now as vital as technological excellence itself.

As the company faces one of its most serious security crises, the key question is whether Samsung’s famed “super-gap strategy” will crumble due to weak internal controls — or emerge stronger through a complete overhaul of its security infrastructure.

By Ju-baek Shin ㅣThe Korea Metaverse Journal

jbshin@kmjournal.net