FKI: "83 Cases of Korean Technology Leakage in 5 Years... Measures Needed"

Seminar on "How to Protect Advanced Technology in the Era of Economic Security"
"Need to Establish Technology Protection Systems and Strengthen Expertise of Investigative Agencies"

[Provided by the Federation of Korean Industries]

[Asia Economy Reporter Han Yeju] As the risk of overseas leakage of South Korea's advanced technologies, including semiconductors, is increasing, there are calls to raise awareness of the crisis and prepare countermeasures.

The Federation of Korean Industries (FKI), the National Intelligence Service (NIS), and the Korean Intellectual Property Office (KIPO) announced on the 30th that they held a seminar titled "In the Era of Economic Security, How to Protect Advanced Technologies" at the FKI Conference Center.

Kwon Tae-shin, Vice Chairman of the FKI, opened the event by stating, "South Korea has risen as a strong nation with a trade volume of $1.2 trillion and ranks 8th in the world in trade scale, thanks to the advancement of technology-based industries such as semiconductors and automobiles."

He emphasized, "Private companies' annual R&D expenditure reaches 73.6 trillion won," adding, "We must strengthen legal and institutional protective measures to prevent technologies and talents painstakingly developed by our companies from leaking overseas."

Lee In-sil, Commissioner of KIPO, said, "Protecting advanced technology is a critical value that goes beyond the survival of companies and concerns the fate of the nation," and added, "As the core agency for technology protection, KIPO will develop more sophisticated policies and support measures to prevent technology leakage." He further noted, "Preventing technology leakage is an area where cooperation between the government and companies is essential to achieve results, so close collaboration is necessary."

Following this, the NIS Industrial Secrets Protection Center presented on "The Actual Situation of Technology Theft by Rival Countries and Countermeasures." According to the presentation, from 2018 to July 2022, the NIS detected a total of 83 cases of overseas leakage of advanced technology. Among these, 33 cases (39.8%) involved leakage of national core technologies that have a significant impact on national security and the national economy. By victim group, small and medium-sized enterprises accounted for the largest number with 44 cases (53.0%), followed by large corporations (31 cases), and universities/research institutes (8 cases). Additionally, 69 cases (83.1%) were concentrated in South Korea's key industries such as semiconductors, electrical and electronics, displays, automobiles, shipbuilding, and information and communications.

The NIS mentioned that the methods used by rival countries' companies to steal technology from Korean companies, research institutes, and universities can be broadly classified into six types: ▲ bribing key personnel ▲ utilizing mergers and acquisitions ▲ exploiting partner companies ▲ collecting technical information through research firms ▲ technology leakage under the pretext of joint research ▲ requesting submission of data conditional on permits and approvals. The NIS supports strict judicial processing by investigative agencies such as prosecutors and police through prompt investigations upon receiving intelligence on technology leakage.

Additionally, Kim Il-gyu, Director of the Industrial Technology Protection Policy Division at KIPO, introduced the trade secret protection system and support policies that companies need to know for technology protection, as well as response methods in case of infringement, during his presentation on "Domestic Trade Secret Protection System and Support Policies."

In the panel discussion chaired by Professor Kim Min-bae of Inha University Law School, experts discussed "Countermeasures for Protecting Advanced Technologies in the Era of Economic Security."

Professor Ahn Sung-jin of Sungkyunkwan University’s Department of Computer Education said, "As economic security is emphasized, various methods of stealing advanced technology are expected to become rampant," advising, "For sustainable technology security, policies to strengthen human capabilities are most necessary." He stressed, "Preventive and protective systems should be reinforced from the early stages of research and development, and support should be provided to establish technology protection systems tailored to company size and level."

Professor Lee Kyu-ho of Chung-Ang University Law School suggested, "It is necessary to establish a trade secret protection foundation that can respond to the new environment where digital technology is advancing," and proposed, "The expertise of investigations and trials related to technology and trade secret infringement cases should be enhanced, and secondary damage from trade secret leakage during criminal proceedings must be prevented."

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