"Industrial Technology Crime Acquittal Rate at 35%... Need for Stricter Punishment and Reestablishment of Control Tower"

FKI Requests Research on Legal Penalties and Sentencing Guidelines for Technology Leakage and Infringement Acts, and Policy Tasks

[Asia Economy Reporter Park Sun-mi] Advice has been raised that the sentencing for technology leakage cases in South Korea is excessively lenient, necessitating stronger punishments and the reestablishment of a policy control tower to enhance responses to technology leakage.

On the 7th, the Federation of Korean Industries (FKI) commissioned Professor Kim Min-bae of Inha University Law School to conduct a study titled "Review of Punishment Laws and Sentencing Guidelines for Technology Leakage and Infringement Acts and Policy Tasks." The study suggested that sentencing guidelines related to technology leakage in South Korea should be strengthened to protect advanced technologies.

Reviewing 81 first-instance criminal trial cases from 2017 to 2021 that violated the "Act on the Prevention and Protection of Industrial Technology Leakage" (hereinafter referred to as the Industrial Technology Protection Act), the verdicts were found to be in the order of ▲suspended sentences (39.5%) ▲not guilty (34.6%) ▲property penalties (8.6%) ▲imprisonment (6.2%). Over five years, only five cases received imprisonment (actual prison sentences) in the first trial, and the acquittal rate for industrial technology leakage cases was more than 11.5 times higher than the overall acquittal rate for criminal cases during the same period (3.0%).

Professor Kim pointed out in the report that although the statutory punishment levels for technology leakage in South Korea are not lower compared to major countries, the actual sentences handed down by courts are significantly lower than the statutory penalties.

The Industrial Technology Protection Act, a representative law related to technology protection, raised the statutory penalties through an amendment in August 2019. For the overseas leakage of national core technologies, imprisonment of three years or more and fines up to 1.5 billion KRW were newly introduced. For infringement with the intent to leak industrial technology other than national core technologies overseas, penalties include imprisonment up to 15 years or fines up to 1.5 billion KRW.

However, when courts actually issue rulings on technology leakage crimes, they apply the "Sentencing Guidelines for Intellectual Property Crimes" under the category of "Trade Secret Infringement." The sentencing guideline for crimes involving overseas technology leakage is classified as Type 2, suggesting a basic imprisonment term of one year to three years and six months, with a maximum sentence of six years even when aggravating factors are considered. Professor Kim noted that this is considerably lower than the penalties stipulated under the Industrial Technology Protection Act for overseas leakage.

The report explained that for the strengthened legal amendments to be reflected in actual court rulings, it is necessary to present proactive sentencing guidelines for technology leakage crimes related to economic security. In particular, national core technologies should be separated into a distinct crime category with specific sentencing guidelines, as their leakage can cause damage to the entire national economy, unlike general trade secrets.

Additionally, reflecting the global trend emphasizing the importance of economic security, the report recommended establishing separate calculation standards for technology leakage and infringement acts under the Industrial Technology Protection Act and the Defense Industry Technology Protection Act. Furthermore, to strengthen responses to technology leakage, it proposed that the comprehensive planning and implementation of national policies on economic security and technology protection be overseen by a policy control tower directly under the President or the Prime Minister, while tasks requiring timeliness and efficiency, such as the designation of national core technologies, be handled by a working committee.

Yu Hwan-ik, head of the Industry Division at FKI, emphasized, "Technology leakage is an act that causes irreparable damage to national competitiveness and industrial development beyond individual ethical responsibility and legal violations," adding, "It is necessary to raise legal and institutional improvements for technology protection as well as public consensus and awareness."

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