Economic Damage from Technology Leakage Amounts to 2.7% of GDP

"Technology I Developed Is Mine" - 36% of Researchers Hold Distorted Views
Strengthen Punishments for Technology Leakage... Accelerate Compensation for Affected Companies

Need to Enhance Compensation for Technology Contributors Like Masters or Intangible Cultural Assets
[Helpless Against Technology Leaks] 'Security Negligence' Is a Bigger Problem Than Annual 50 Trillion Won Damage View original image


[Sejong=Asia Economy Reporters Kwon Haeyoung and Joo Sangdon] The seriousness of industrial technology leakage lies not only in weakening national competitiveness but also in falling behind in the global race for technological leadership. According to the National Intelligence Service's Industrial Secrets Protection Center, the estimated annual domestic economic damage caused by technology leakage exceeds 50 trillion won. The U.S. Senate also estimates the national loss from overseas leakage of industrial technology and trade secrets to be between 1% and 3% of GDP. This underscores the urgent need for 'technology security' to maintain national competitiveness. China, pursuing a 'fast following' strategy, is openly intensifying efforts to acquire technologies from leading industrial technology countries such as South Korea, the U.S., Japan, and Taiwan. Consequently, there is growing support for raising awareness about industrial security and strengthening preferential treatment for technologists.


◆Widespread Industrial Security Apathy Across Korean Society= On the 6th, Park Heejae, Chairman of the Korea Industrial Technology Protection Association and Professor of Mechanical Engineering at Seoul National University, pointed out, "One of the serious causes of technology leakage overseas from Korea is the very low awareness of technology security throughout our society. There is no recognition that 'technology should be legitimately purchased with money,' and combined with the lack of security awareness among researchers and CEOs, there are insufficient devices and procedures to protect industrial technology."


In particular, the security apathy among researchers and CEOs, who should directly handle and protect technology, is at a serious level. Jang Hangbae, Professor of Industrial Security at Chung-Ang University, said, "PhD researchers working on core technologies extremely dislike being controlled due to their perception of being 'the best in their field.' About 40% of researchers perceive research outcomes as their personal property, and this perception has not changed even now." According to a 2015 survey on ownership perception, 63.8% of 315 respondents answered that the property belongs to the company. In other words, the remaining 36.2% believe that researchers also have ownership rights.


◆Need to Establish Compensation Systems for Core Technology Contributors= Experts agree that in the short term, punishments for technology leakage should be strengthened, while in the long term, compensation for technology development should be enhanced. Lawyer Lim Hyeongju of Yulchon LLC emphasized, "Most cases of technology leakage result in suspended sentences, and the compensation amounts for affected companies are very low. Since damages from technology leakage have already occurred and increase over time, compensation should be expedited and punishments strengthened."


Park Yoonjae, CEO of Mirae Industrial Information, a domestic and international information leakage investigation and diagnosis specialist company, cited the Coca-Cola case. Park said, "At Coca-Cola, employees with core technologies or trade secrets sometimes receive 2 to 3 years' worth of salary upon resignation. This is to ensure that key personnel who leave can live without distractions for at least 2 to 3 years. In Korea, I have never heard of companies providing such support for security reasons."


He also stressed the importance of specifying compensation for technology leakage in contracts. Park cited Apple as an example, saying, "Apple includes substantial compensation clauses in contracts with companies that leak its information and technology. In Korea, except for a few large corporations, such contracts are not commonly included."


There was also a suggestion that the government should establish appropriate compensation systems to help resist the temptation of technology leakage. Professor Jang said, "Companies may think that protecting their core technologies is their responsibility, but since leakage can have a significant negative impact on the national economy, government support is necessary." He added, "Masters or intangible cultural assets are protected and supported by the state, but technology is relatively neglected."



To improve CEOs' awareness, it is also necessary to strengthen industrial security education and security level diagnosis and consulting. Park Yoonjae said, "For small and medium-sized enterprises, it is realistically difficult to invest in industrial security costs. The Ministry of SMEs and Startups should enhance security consulting for these companies."

[Helpless Against Technology Leaks] 'Security Negligence' Is a Bigger Problem Than Annual 50 Trillion Won Damage View original image


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

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