SME Industry Complains of Technology Theft by Large Corporations... "Related Laws Must Be Improved"

Hosting a National Assembly Members' Meeting for Companies Affected by Unfair Trade and Technology Theft
Listening to Cases of Affected SMEs, Discussing Relief Measures, and Seeking System Improvements

SJ Innotech CEO Jeong Hyeong-chan (fourth from the left) attending the meeting is explaining a case of technology theft suffered from a large corporation. Photo by Gyeongcheong

[Asia Economy Reporter Kim Heeyoon] On the 17th, Democratic Party lawmaker Kim Kyungman and Gyeongcheong, a public interest foundation for the restoration of rights of small and medium enterprises (SMEs), held a meeting with members of the National Assembly at the Korea Federation of SMEs in Yeouido to discuss unfair trade practices and technology theft damages suffered by SMEs.

Damages to SMEs caused by unfair trade practices and technology theft by large corporations have been steadily increasing. Over the past five years, the number of dispute mediation applications reached 385 cases (Ministry of SMEs and Startups, 2019), and the confirmed amount of technology misappropriation damages alone amounted to 541 billion KRW (Korea Federation of SMEs, 2018).

This meeting was organized to hear actual damage cases and the resulting hardships from representatives of 12 SMEs who suffered from unfair trade or technology theft by large corporations, with participation from Lee Hakyoung, chairman of the National Assembly’s Industry, Trade, Energy, SMEs and Startups Committee, as well as lawmakers Kim Kyungman, Shin Jeonghoon, and Lee Dongju, and to seek remedies and solutions.

Moderated by lawmaker Kim, the meeting involved affected companies sharing their damage cases and hardships, which the attending lawmakers listened to.

Complaints were voiced regarding the grievances of SMEs suffering from unresolved long-term legal disputes with large corporations such as LG Uplus, Hyundai Motor Company, and Woori Bank. Additionally, suggestions for solutions were proposed by companies currently engaged in legal disputes with Kakao Games, Lotte Global Logistics, and Shinhan Card. Notably, officials from related ministries and administrative agencies including the Ministry of SMEs and Startups, Ministry of Trade, Industry and Energy, Korea Fair Trade Commission, and Korean Intellectual Property Office also attended to listen to the affected companies’ opinions and to discuss case-by-case damage relief and cooperative measures for coexistence between large and small-medium enterprises.

Gyeongcheong presented the need to discuss improvements related to the Subcontracting Act, Win-Win Cooperation Act, and Unfair Competition Prevention Act in their legal and policy improvement proposals aimed at resolving these issues. They also advocated for the introduction of a citizen participation trial system in future technology infringement lawsuits.

Lawmaker Kim stated, “The issue of technology theft between large and small-medium enterprises is a representative unfair trade practice that hinders the growth of our economy. Despite various government measures to eradicate technology theft, many SMEs continue to suffer damages in inter-company transactions. We will strive to achieve fundamental institutional improvements through future government audits and other means.”

This content was produced with the assistance of AI translation services.