Government "If caught industrial spying, push for 5 times harsher penalties than now"

23 Cases of Industrial Technology Leaks Detected Last Year... Largest in 5 Years
Main Target is Semiconductors with 15 Cases
Industrial Technology Protection Act Amended to Strengthen Compensation Penalties

It was revealed that 23 cases of industrial technology were leaked overseas last year alone. This is the highest number in the past five years, with semiconductor technology, where Korean companies hold a competitive edge, being the main target. The government is strengthening penalties by expanding the cap on punitive damages for technology infringement by five times and is also promoting the introduction of a registration system for institutions holding industrial technology to prevent leaks in advance.

The Ministry of Trade, Industry and Energy announced on the 6th that 23 cases of industrial technology leakage were detected last year. The number of detected cases of industrial technology leakage has been steadily increasing. Up to 2016, a total of 25 cases were detected, with 17 cases in 2020, 22 cases in 2021, and 20 cases in 2022. Although the number of detected cases last year is the highest in the past five years, considering that the 2016 figure represents the total number of cases detected in the past, it can be said that the number of technology leakages detected last year was actually the highest.

Overseas companies targeted Korea's semiconductor technology the most. Last year alone, 15 cases of semiconductor technology were leaked. More than half of the total leaks were related to semiconductors. A Ministry of Trade, Industry and Energy official explained, "In the past, there were many cases of technology leakage in the electrical and electronic fields, but recently semiconductor technology has become the main target," adding, "Cases of semiconductor technology leakage, where Korea holds a competitive advantage, have increased fivefold from 3 cases in 2019."

To prevent the continuously increasing technology leakages, the government is pushing for amendments to the 'Industrial Technology Protection Act.' Following the Technology Security Forum and meetings with technology-holding institutions in 2022, and after gathering opinions through a public seminar for technology-holding institutions and legislative notice of the amendment last year, the government submitted the bill to the National Assembly after regulatory and legal reviews. The bill was merged with related lawmakers' proposals and passed the standing committee hurdle in November last year. It is now awaiting approval from the Legislation and Judiciary Committee and the plenary session.

The core of the amendment is strengthening punishment and management. First, the cap on punitive damages for infringement will be expanded from three times to five times, and the existing fine of up to 1.5 billion KRW for overseas leakage crimes will be raised to up to 6.5 billion KRW for national core technologies and up to 3 billion KRW for industrial technologies. Additionally, brokers involved in technology leakage will also be punished, and the scope of punishment requirements will be expanded from 'purpose' to 'intent.'

For management enhancement, the government will be able to apply ex officio for the determination of whether a technology qualifies as national core technology, which was previously requested voluntarily by companies through 'determination applications,' and the scope of the national core technology status survey will be expanded. A Ministry of Trade, Industry and Energy official said, "The amendment will take effect six months after promulgation," adding, "It is expected that the passage of this law will reduce industrial technology leakage."

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