South Korea’s ITM Semiconductor recovered about KRW3.5 billion ($2.47 million) out of an employee embezzlement worth KRW13.2 billion at its Vietnamese subsidiary ITM Semiconductor Vietnam.

In its annual report for 2025, ITM Semiconductor said after the recovery, the outstanding KRW9.7 billion won ($6.8 million) was recorded as a receivable from illegal acts and written down in full. ITM Semiconductor highlighted significant uncertainty over whether the money can be retrieved.

The company reported the case to Vietnamese authorities in January 2026 and a police investigation is under way. On discovering the scheme, ITM Semiconductor conducted an internal investigation and judged the likelihood of further losses to be low.

The fraud was only a fraction of a much larger deterioration at the unit. ITM Semiconductor Vietnam reported a net loss of about KRW85.7 billion won on revenue of KRW174 billion won. The net loss in 2025 was worse than KRW20.8 billion a year earlier, according to the financial statement.

ITM Semiconductor makes protection components for rechargeable batteries and runs manufacturing operations in Vietnam, China, and other countries.

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