Differences in 'Core Industrial Technologies' Determine National Competitiveness Amid Global Economic Hegemony Struggles
South Korea, with Advanced Semiconductor Technology, a Major Target for Technology Theft
Most Domestic Industrial Technology Theft Cases Result in Suspended Sentences or Fines... Need for Harsher Penalties

[Desk Column] Apply Espionage Charges to Spies Stealing 'Economic War Weapons' View original image


[Asia Economy Reporter Lee Cho-hee, Head of the Industry Department] Francis Bacon, a 17th-century English empiricist philosopher and scientist, identified the three major inventions that led the West into modern society as the compass, printing, and gunpowder. Although the first gunpowder is known to have been invented in China before the 10th century, there are no precise records. One thing is clear: the manufacturing method of gunpowder was a "top secret" strictly prohibited from being leaked to outsiders in any era or among any people.


In Korea, General Choi Mu-seon, a military commander at the end of the Goryeo Dynasty, was the first to invent weapons using gunpowder. Just as scientific and technological advancements marked major turning points in human history, some argue that the domestic production of gunpowder completely changed the fate of Goryeo at that time. Park Sung-rae, Professor Emeritus at Hankuk University of Foreign Studies and author of "Is There Science in Korean History?", evaluates that "With Choi Mu-seon's invention of gunpowder, Yi Seong-gye could become a hero in the war against the Japanese pirates, eventually leading to the founding of the Joseon Dynasty." The invention of gunpowder was a decisive turning point that made today’s Republic of Korea possible.


Science and technology have become absolute powers as society moved into the modern era. Advanced technology is also regarded as a strategic weapon in the 21st-century power struggles between nations. This is the backdrop for the economic warfare in which major countries spare no means to acquire industrial information. Korea, with its remarkable IT industry development and semiconductor technology, has been a target of technology theft for decades. According to the National Intelligence Service, among the cases of industrial technology leaks from 2016 to 2021, the largest share was in the electrical and electronics sector (41 cases). When the leaked technology types are expanded to include trade secrets, the scale of damage is beyond imagination. According to the National Police Agency, the damage from leak incidents between 2017 and 2021 reached 22 trillion won.


Recently, a current employee of Samsung Electronics was caught attempting to leak a large amount of foundry (semiconductor contract manufacturing) technology. (Reported by Asia Economy on March 23) The company is investigating the employee, but the exact scope and whether the technology was leaked remain unconfirmed. The industry is shocked that an attempt was made to leak technology in the foundry sector, which is the fastest-growing area in the global semiconductor market and a future growth engine actively nurtured by Samsung Electronics.


Although the National Intelligence Service and private companies operate a spiderweb-like security network, attempts at leaks continue unabated. Is it because punishments for industrial spies are too lenient? According to statistics compiled by the Judicial Yearbook, only 15 cases violating the Industrial Technology Protection Act were received and concluded in first-instance courts in 2019. Of these, only one resulted in imprisonment. Most were released with suspended sentences or fines. According to the Industrial Technology Protection Act, if caught attempting to leak national core technology, one faces at least three years of imprisonment and fines up to 1.5 billion won, but there is no minimum punishment for general technology. The Supreme Court Sentencing Commission’s standards are also low. The basic sentencing guideline for overseas technology leakage is imprisonment for 1 to 3 years and 6 months. With mitigating factors, it ranges from 10 months to 1 year and 6 months, and even with aggravating factors, it only reaches 2 to 6 years of imprisonment.

[Desk Column] Apply Espionage Charges to Spies Stealing 'Economic War Weapons' View original image


On the other hand, major foreign countries classify overseas technology leakage as an act of treason. In the United States, if national strategic technology leakage is detected, the "Economic Espionage Act" is applied, imposing up to 20 years imprisonment and a $5 million fine. In the domestic industry, calls to apply espionage charges to overseas technology leakage have been made for over 10 years but have yet to materialize.



We live in an era where technological differences determine national competitiveness. No company can survive if advanced technology developed with astronomical funds and talent is stolen. It also adversely affects national security and the development of the national economy. The recurring issue of technology leaks and weak punishments must now come to an end. At a recent meeting of the heads of six economic organizations, President-elect Yoon Seok-yeol said, "These days, the war is not with guns but with semiconductors." We look forward to the Yoon administration taking real action to protect the weapons needed to win this war.


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

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