Lee International

In recent times, crimes related to the technology leakage in key high-tech sectors like semiconductors, displays, secondary batteries and biotechnology have become a pressing concern in Korea.

The National Intelligence Service (NIS) in Korea reported 552 cases of the technology leakage crimes abroad from 2003 to July 2023, resulting in estimated damages exceeding KRW 100 trillion (USD 72.6 billion).  Particularly concerning is the sharp increase in cases involving critical national technologies, with 96 incidents recorded in the last five years (from 2019 to 2023).

In response, there is a growing demand for stricter penalties for technology leakage at the national level, prompting discussions on countermeasures across various branches of the government, including the executive, legislative and judicial sectors.

Proposed revisions to the Act on the Prevention and Protection of Leakage of Industrial Technology, currently under discussion at the National Assembly, include raising the cap on punitive damages for technology infringement from three times to five times, and significantly increasing fines for overseas technology leakage crimes from KRW 1.5 billion (USD 1 million) to KRW 6.5 billion (USD 4.7 million).  In addition, penalties for the technology leakage brokers will also be enhanced, targeting only those who intentionally steal technology.

Meanwhile, the judicial branch of the government has initiated measures to strengthen sentencing standards for technology leakage offenses.  In March 2024, Korea’s Supreme Court introduced sentencing guidelines, proposing a maximum prison term of 18 years for leaking national core technology abroad.  Moreover, the standard sentencing for general technology leakage has been elevated to a maximum of 15 years in prison.  In addition, “persons with a special duty of confidentiality,” a factor influencing sentence severity, has been broadened to include affiliate entities such as business partners.

The Korean Intellectual Property Office (KIPO) has taken a more proactive stance compared to the legislature or judiciary branch of the government.  The NIS recently designated KIPO as a new counterintelligence agency to enhance efforts in combating industrial technology leaks.

Accordingly, KIPO will identify, monitor and intercept information activities of foreign entities, and will actively collaborate closely with other relevant agencies to share intelligence and conduct investigations. Furthermore, KIPO will leverage its technical expertise and patent big data obtained from criminal investigations of technology leakage to strengthen counterintelligence efforts to prevent future technology leaks.

Considering the above-mentioned measures aimed at combating technology leakage crimes, it is expected that patents, trade secrets and other technologies will receive enhanced protection in Korea.