In order to address the theft of semiconductor and industrial technology secrets, the South Korean government has announced plans to implement strict punishment for individuals engaged in such illicit activities. This decision was revealed by the Ministry of Trade, Industry and Energy in response to an increase in cases of technology theft on behalf of foreign companies, particularly those based in China.
In November of last year, the ministry presented the revised Act on Prevention of Divulgence and Protection of Industrial Technology for approval at the National Assembly. Once approved, there will be a six-month grace period for the act’s ordinances to be revised, after which it will come into full effect.
The revised law will significantly increase penalties for leaking the country’s intellectual property to foreign companies. The maximum penalty for key technologies will be raised to 6.5 billion won, and a maximum of 3 billion won for lower-level technologies. Additionally, the financial restitutions to victims of IP crimes will be increased significantly, ranging from three to five times the original amount.
The scope of punitive measures has also been expanded to include the liability of brokers involved in technology theft. Furthermore, authorities will now consider intent rather than purpose in criminal investigations, thus broadening the scope of punishable actions.
The new law also includes additional evaluation categories for approving mergers and acquisitions of Korean companies by foreign firms. These categories will assess the potential impact of the merger on the nation’s security and economy, reinforcing the government’s commitment to safeguarding national technologies.
The decision to revise the law was the outcome of discussions and feedback received during forums, seminars, and press conferences throughout 2022-23. The aim was to protect technologies developed within Korea and prevent their unauthorized dissemination overseas.
According to a ministry official, the revised law seeks to proactively prevent technology theft, whether intentional or inadvertent. It aims to serve as a strong deterrent against foreign entities attempting to exploit Korean technologies for their gains. The official also emphasized the importance of preventing unintentional leaks of technologies by individuals unaware of the law’s implications.
The need for stricter measures against technology theft became apparent as the number of cases reached a peak in the past year, with 23 incidents reported across various industries including semiconductors, displays, rechargeable batteries, and automobiles. One high-profile case involved employees at Samsung Electronics, who were arrested for sharing the company’s semiconductor technology with a Chinese firm, causing significant damage to the country’s semiconductor industry.
In response to these developments, the revised law has been designed to address the shortcomings of the original legislation and ensure that individuals involved in technology theft are held accountable. This includes imposing substantial financial retribution and recognizing the role of brokers in facilitating such illegal activities.
Overall, the strengthened punitive measures under the revised law signify a significant step forward in deterring and penalizing individuals involved in technology theft. With the enhanced provisions, there is a clear message that such actions will not be tolerated, and those involved will face severe consequences.
This move towards stricter penalties for technology theft in South Korea reflects the government’s commitment to protecting the nation’s intellectual property and maintaining its technological edge in the global market.
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