Fines Up to 6.5 Billion Won for Overseas Leakage of National Core Technologies... Government Announces Draft Amendment to Enforcement Decree

From now on, if domestic companies with global competitiveness in semiconductors, displays, shipbuilding, automobiles, and other key national technologies leak these technologies overseas, they will face fines of up to 6.5 billion KRW.

On the 31st, the Ministry of Trade, Industry and Energy announced that it will give prior notice of partial amendments to the "Enforcement Decree and Enforcement Rules of the Act on Prevention and Protection of Industrial Technology Leakage."

This amendment was made to strengthen sanctions and reorganize the technology protection system in response to the intensifying technological hegemony competition and the reality of increasing overseas leakage of domestic core technologies every year.

In fact, overseas leakage of industrial technology increased from 17 cases in 2020 to 23 cases each in 2023 and 2024. Among the technologies leaked this year were semiconductors (6 cases), displays (8 cases), shipbuilding (4 cases), and automobiles (2 cases).

The amendment introduces a ‘possession confirmation system’ that allows the state to demand companies to verify possession of key national technologies ex officio to prevent technology leakage in advance. Companies possessing key national technologies must register as possessing institutions for systematic management. In addition, the Minister of Trade, Industry and Energy can immediately issue orders to prohibit or suspend illegal mergers and acquisitions of possessing companies.

Furthermore, the existing maximum fine has been raised from 1.5 billion KRW to 6.5 billion KRW, and the punishment criteria have been expanded from ‘purpose-based offenses’ to ‘intentional offenses,’ allowing punishment even if there is only awareness of the possibility that leaked technology may be used overseas. Brokers can also be subject to criminal penalties. In addition, the limit for damages for industrial technology infringement has been increased from three times to five times.

On the other hand, support for companies that faithfully comply with regulations will be strengthened. For exports with a low possibility of technology leakage due to general business activities, the review process will be exempted or simplified. The scope of government budget support has been expanded to include simplification of technology confirmation certificates and costs for building security facilities, thereby reducing the burden on companies.

An official from the Ministry of Trade, Industry and Energy said, "Through this system improvement, we plan to create a policy environment that balances systematic protection of key national technologies with technology protection and enhancement of industrial competitiveness."

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