Possible with Just One Mediator... SME Technology Dispute Mediation to Accelerate Significantly

In order to swiftly resolve technology leakage disputes between small and medium-sized enterprises (SMEs), the "SME Technology Dispute Mediation and Arbitration Committee," which operates prior to formal litigation, will soon be able to proceed with mediation and arbitration procedures with just one mediator. Regulations are being revised so that a single mediator can handle the process. Additionally, if the respondent company unilaterally refuses to participate in the mediation process, the committee will be able to issue a settlement proposal ex officio, further improving the speed and efficiency of the proceedings.

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According to the government and related industries on December 12, the SME Technology Dispute Mediation and Arbitration Committee will adopt the "single-mediator panel" system starting next year, allowing mediation and arbitration procedures to begin with just one mediator. The operating body, the Korea Commission for Corporate Partnership, will review the amount in dispute and the complexity of the issues involved in each case referred to the committee. If the case is deemed relatively simple, it will be assigned to a single-mediator panel.

Currently, mediation panels consist of three to five members, including legal and technical experts. However, it has been consistently pointed out that simply coordinating the schedules of the mediators takes considerable time, and administrative costs are significant, making it difficult to handle cases quickly. With the introduction of the single-mediator panel, the time and cost required to reach a settlement are expected to be greatly reduced, thereby strengthening the original purpose of the system.

According to the Ministry of SMEs and Startups, of the 204 cases referred to the committee from 2015 to November 2025 in which the applicant specified a mediation amount, 34 cases (17%) involved disputes of less than 50 million won, indicating that a significant portion were simple cases. A ministry official stated, "With the introduction of this system, the time required to reach a mediation proposal is expected to be reduced to about half of the current level," adding, "If the SME Technology Protection Act is amended next year, the new system could be fully implemented in the second half of the year."

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There are also plans to allow the mediation panel to issue a settlement proposal ex officio and close the case if the respondent company unilaterally refuses to participate in the mediation process or acts in bad faith. This is intended to prevent cases from failing entirely due to one party's lack of cooperation. According to the office of Assemblyman Seo Wangjin of the National Innovation Party, of the 256 cases referred to the committee from 2015 to September 2025, 125 cases (48.8%) ended in "failure or withdrawal of claim" without any mediation proposal being prepared, accounting for nearly half of the cases.

The SME sector expects that, with this revision strengthening the effectiveness of the mediation and arbitration committee, the difficulties experienced during technology leakage lawsuits-such as lengthy litigation periods and high costs-will be significantly alleviated. According to the Ministry of SMEs and Startups' "2024 Technology Protection Status Report," technology leakage cases took an average of over one year to reach a first-instance verdict, which is longer than other civil lawsuits. Although the government established the committee to encourage amicable settlements between companies before formal litigation, the actual mediation success rate has been extremely low, leading to criticism that the committee has been ineffective.

Attorney Park Heekyung of the Gyeongcheong Foundation commented, "It is positive that the time and cost required for simple cases with low mediation amounts can be reduced, allowing more resources to be invested in more complex cases. Until now, there was no way to prevent respondent companies from delaying or refusing the process without any reason, but the introduction of measures to address this is also highly significant."

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