The government is intensifying penalties and economic sanctions against technology theft in advanced industries such as semiconductors and displays. Plans include expanding the scope of asset forfeiture for profits gained from technology theft and introducing special judicial police authority within the Ministry of Trade, Industry and Energy. The government also aims to enhance oversight of vulnerable sectors, including small and medium-sized enterprises and universities.
On October 19, Minister Kim Jeong-kwan chaired the 76th Industrial Technology Protection Committee, where measures to strengthen the prevention and protection of industrial technology leakage were discussed. This meeting included participation from the National Police Agency, the Serious Crimes Investigation Agency, the Public Prosecution Service, and the Defense Acquisition Program Administration, in addition to existing committee members. The goal is to enhance cooperation between departments responsible for technology protection and information and investigative agencies to improve the response system to technology leakage.
Despite the government's efforts to prevent technology leakage, risks remain high in advanced industries. The National Intelligence Service reported that the number of cases of industrial technology being leaked overseas was 22 in 2021, 20 in 2022, 23 in 2023, 23 in 2024, and 19 last year.
Strengthening technology protection has been an ongoing task within the industrial technology protection policy. In December 2024, the government prepared the '5th Comprehensive Plan for Preventing and Protecting Industrial Technology Leakage (2025-2027).' At that time, key tasks included enhancing the timeliness of the national core technology protection system and improving the effectiveness of investigations and penalties for technology leakage crimes.
By November of that year, 21 cases of industrial technology leakage overseas had been detected, with estimated damages to companies reaching approximately 25 trillion won over the past five years. The new measures focus on specifying enforcement tools, including the introduction of special judicial police and the expansion of asset recovery.
First, the government will strengthen the designation and review system for national core technologies. It plans to timely designate new technologies requiring protection and expand the review targets to include overseas corporate sales, withdrawals, and mergers and acquisitions (M&A) involving foreign entities.
Small and medium-sized enterprises and universities, which are often vulnerable to technology leakage, will also be included in the management targets. The government will enhance the frequency and content of technology protection assessments and establish legal grounds to issue corrective orders if companies fail to implement improvements. Additionally, it will expand diagnostics and support for partners with weak security systems and strengthen security management for research and development (R&D) projects related to national core technologies.
Regarding the overseas relocation of key personnel in the semiconductor sector, the government will consider institutional improvements within the bounds of constitutional rights, such as freedom of occupational choice. Incentives for companies and information-sharing measures regarding employee relocations are among the options being reviewed.
The government will also strengthen economic sanctions against technology leakage crimes. It plans to expand the scope of asset forfeiture and recovery to ensure that the disadvantages incurred exceed the profits gained from technology theft. Furthermore, it will pursue measures to at least reflect the costs incurred by affected companies in the damages awarded.
By granting special judicial police authority to the Ministry of Trade, Industry and Energy, the government aims to enhance the investigation system for technology leakage and promote information sharing among agencies. Discussions will also be held to improve the expertise of courts in handling technology leakage cases, including raising sentencing guidelines and establishing new fine guidelines. A proposal will be made to allow courts to verify whether the technology in question qualifies as industrial technology during trials.
The government plans to introduce amendments to the Industrial Technology Protection Act and the National Advanced Strategic Industry Act in October. Related content will also be included in the 6th Comprehensive Plan for Industrial Technology Protection, which is being prepared for announcement by the end of the year.
Minister Kim Jeong-kwan stated, "Technology leakage is a serious issue that can undermine the industrial competitiveness accumulated by the nation and companies over a long time and at great cost, threatening national security. We will ensure the smooth implementation of the proposed amendments and the announcement of the comprehensive plan to protect our national industrial technology."
* This article has been translated by AI.
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