South Korea Moves to Strengthen Protection of National Core Technologies

According to Yonhap News Agency, South Korea's Ministry of Trade, Industry and Energy (MOTIE) has announced a proposed amendment to the Act on Prevention of Divulgence and Protection of Industrial Technology, aiming to bolster safeguards for national core technologies and impose tougher penalties for technology leakage. The amendment is scheduled for completion by July 22.

Key revisions include:

1) Raising the maximum fine for leaking national core technologies from KRW 1.5 billion to KRW 6.5 billion;

2) Expanding the scope of criminal liability from "intent-based" offenses to "knowledge-based" offenses - meaning individuals may be held accountable even if they merely know that leaked technologies will be used overseas;

3) Imposing penalties on intermediaries who introduce or solicit the outflow of protected technologies; and increasing the cap on compensation for technology infringement from three times to five times the damages incurred.

The revision also aims to enhance the registration and management system for national core technologies. A new certification system will be introduced, allowing the government to require companies to determine whether their technologies qualify as national core technologies. In cases of illegal acquisition or possession of such technologies, MOTIE will be empowered to order suspension, prohibition, or restoration of relevant activities. Companies that refuse to comply may be fined up to KRW 10 million per day until corrective action is taken.

To support South Korean companies in safely exporting their technologies, the amendment also includes measures to simplify the review process for low-risk exports and expand financial assistance for the construction of security facilities.

South Korea defines "national core technologies" as those with high technological and economic value, or with significant growth potential in domestic and global markets. Currently, 76 technologies across 13 sectors - including semiconductors, automobiles, and steel - are designated as national core technologies.

The move comes amid a rising number of industrial technology leakage cases in recent years, with 17 cases reported in 2020 and 23 in 2024. Over the past five years, a total of 105 cases have been recorded.