South Korea and EU Raise Alarm on Chinese Cyber Espionage

South Korea is on alert after a recent Bloomberg report has revealed that Chinese “spy chips” have purportedly been mounted on servers made by San Jose-based tech company Supermicro.

Business Korea, an English-language business and financial magazine in South Korea, reported widespread use of Supermicro servers among the country’s financial institutions, large corporations, and government-run research institutes, in an article published on Oct. 8.

Two government-run institutes are named: the Electronics and Telecommunications Research Institute (ETRI), one of South Korea’s leading institutes in research and development of wireless communication, and Korea Aerospace Research Institute (KARI), a government agency that is mainly responsible for the country’s satellite, rocket, and lunar exploration projects.

Many private companies also use Supermicro servers, such as South Korean electronics giants Samsung and LG, mobile service provider KT, and the publicly listed steel-making company POSCO. One research institute is identified: Korea Institute of Science and Technology (KIST), which is

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