Small and Medium Enterprises to Introduce 'Technology Protection Insurance'... Government Supports 70% of Premiums

Development of Technology Protection Insurance Products Exclusively for SMEs
Samsung Fire & Marine Insurance, DB Insurance, Meritz Fire & Marine Insurance Participate
Alleviating Costs of Technology Disputes Including Hiring Lawyers

[Asia Economy Reporter Kim Bo-kyung] The government is launching a technology protection policy insurance to alleviate the cost burden arising from technology disputes faced by small and medium-sized enterprises (SMEs).

The Ministry of SMEs and Startups (MSS) announced the introduction of the "SME Technology Protection Policy Insurance" (hereinafter referred to as Technology Protection Insurance) and will begin recruiting subscribers from the 18th.

The MSS stated that the Technology Protection Insurance was introduced to reduce the litigation costs for companies, such as attorney fees, in the event of technology leakage or theft. After a participation recruitment process targeting non-life insurance companies, Samsung Fire & Marine Insurance, DB Insurance, and Meritz Fire & Marine Insurance, which have extensive experience in similar policy-type insurance, were selected as the executing insurers.

The MSS developed a technology protection insurance product exclusively for SMEs in collaboration with the selected insurers. Going forward, the insurers will handle tasks such as issuing insurance policies and processing claims and payments related to incidents.

The Technology Protection Insurance covers up to KRW 100 million for costs related to trade secrets, patent rights, and other protected technologies through domestic courts, including ▲attorney fees and other expenses for legal defense against third-party lawsuits (basic coverage, KRW 50 million) and ▲legal costs for filing lawsuits against parties infringing on the protected technology (optional rider, KRW 50 million).

The coverage period can be selected from 1 year up to a maximum of 3 years to strengthen SMEs' dispute response capabilities amid prolonged technology disputes and to ease financial burdens.

The insurance is available to SMEs holding trade secrets or patent rights, with the government supporting 70% of the total premium while SMEs pay 30%.

For certified companies such as venture companies, Main-Biz, Inno-Biz, and technology protection leading companies, an additional premium support of up to 10% is provided to reduce the premium payment burden on SMEs.

For inquiries about subscribing to the Technology Protection Insurance, guidance can be obtained through the operating agency, the Cooperation Fund for Large, Small, and Medium Enterprises and Agriculture, Forestry and Fisheries, or participating insurance companies.

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