[Exclusive] Stealing Core Technologies While Poaching Talent from SMEs

National Investigation Headquarters' 'Special Crackdown on Overseas Industrial Technology Leakage Offenders'
8 Cases Detected and 28 Arrested in 6 Months
Scout Offers Under Technology Leakage Conditions
Focus on Export Industries Such as Semiconductors and Machinery

[Asia Economy Reporter Lee Gwan-ju] Mr. A, who is employed at a domestic small and medium-sized enterprise (SME), recently received a large-scale scouting offer from an overseas company. In exchange for several times his current salary and relocation expenses, the overseas company presented a condition to Mr. A: he had to bring the core manufacturing technology of his current company. Having access to the core technology, Mr. A attempted to transfer it to the overseas company. Fortunately, the police, having obtained intelligence, apprehended Mr. A and were able to prevent the technology leak.

According to a comprehensive report by Asia Economy on the 16th, the National Police Agency’s National Investigation Headquarters uncovered eight cases of overseas technology leakage and arrested 28 people, including Mr. A, over a six-month period from May 1 to October 31 this year. Although the police have conducted special crackdowns on technology and trade secret leaks both domestically and internationally every year, this is the first time they have focused specifically on overseas technology leakage.

The companies affected in this crackdown included six SMEs and two large corporations, with SMEs overwhelmingly represented. The leaked regions included six cases in East Asia, one in Southeast Asia, and one in the Middle East. While the police did not disclose specific countries, it was reported that leaks to China were predominant. By type of leaked technology, there were two cases in shipbuilding, and one case each in electrical and electronics, semiconductors, robotics, displays, and machinery. All are key export sectors and advanced technologies of South Korea.

Even during the non-face-to-face era caused by COVID-19, attempts to extract core technologies of export-leading products such as shipbuilding, semiconductors, and electrical and electronics, mainly from SMEs, have continued. In the same period in 2019 and last year, the police uncovered 10 cases of overseas technology leakage each year. Although there has been a slight decrease this year, it is highly likely that attempts by overseas companies to steal core technologies of domestic companies will increase once the COVID-19 situation stabilizes.

The police also anticipate an increase in the leakage of core technologies such as semiconductors, secondary batteries, and shipbuilding to major overseas competitors and are expanding their response capabilities for preemptive defense. Centered on the “Industrial Technology Protection Investigation Teams” deployed in police agencies nationwide, activities are underway to protect defense industry technologies, which are key to national security, and industrial technologies designated by the state to maintain national competitiveness. A National Investigation Headquarters official stated, "Although overseas technology leakage appears to have decreased compared to previous years due to the economic downturn caused by COVID-19, attempts to steal core technologies and personnel from domestic key industries continue," adding, "We plan to continuously conduct crackdowns to protect the core technologies of domestic companies and contribute to enhancing national competitiveness."

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