The government will increase the severity of punishments for the leakage of national core technology. Fines for leaking core technology, which were previously below 1.5 billion won, will be raised to 6 billion won. Additionally, technologies deemed highly necessary to protect will be newly designated as national core technologies. Notable examples include multilayer ceramic capacitor (MLCC) design and manufacturing process technology in the battery sector and synthetic aperture radar (SAR) payload production and verification technology in the space sector. This aims to strengthen prevention and sanctions to prevent technology leaks.
The Ministry of Trade, Industry and Energy noted on the 27th that the 58th Industrial Technology Protection Committee was convened, and reviewed the '5th Comprehensive Plan on Industrial Technology Leakage Prevention and Protection (5th Comprehensive Plan)', which includes these contents.
The plan includes ▲enhancing the expertise in investigation and trials regarding core technology leaks and rational punishment, ▲advancing the management of technologies and institutions that should be protected, ▲overhauling the national core technology export and M&A review system, and ▲strengthening security capabilities and personnel management systems at universities and small enterprises.
◇ Easing the requirements for constituting a crime and eliminating blind spots in punishment
The government has eased the requirements for constituting overseas leak crimes from intent to deliberate intent. This is intended to alleviate the burden on investigative authorities to prove suspicion.
When core or industrial technology is leaked overseas, fines will be increased from the previous 1.5 billion won to 6 billion won and 3 billion won, respectively. The ceiling for punitive damages will be raised from 3 times to 5 times. An official from the Ministry of Trade, Industry and Energy explained, “We will strengthen the existing punishment system and, at the same time, provide a basis for punishing brokers who introduce, mediate, or entice technology leaks to eliminate blind spots in technology protection.”
Additionally, to strengthen the investigation and response system for technology leak crimes, the 'Intergovernmental Task Force for Technology Leak Response,' launched in November last year, will be actively utilized to reinforce cooperation. The need for special judicial police officers for investigating industrial technology leak crimes will also be continuously discussed with relevant ministries. Industrial technology leak crimes will be added to the courts' jurisdiction concentration targets to enhance trial expertise.
◇ Finding technologies that should be protected in advance to prepare for overseas leaks
Considering market size, growth potential, industrial competitiveness, and relevance to national security, the government plans to designate MLCC design and manufacturing process technology and SAR payload production and verification technology as national core technologies in the first half of next year. MLCC is an essential component for stable current control within electronic products and is used in semiconductors, information technology (IT), automobiles, and more. SAR is a radar that observes oceans and land from the air and has been actively used in recent defense microsatellite system developments.
In addition, fields such as metals, chemicals, and ceramics will be newly established in the national core technology sectors, and key strategic technologies under the ‘Act on the Promotion of Industrial Technology and Equipment Industry’ (SoBuJang Act) will be added as ‘industrial technologies’ for protection.
Institutions with high technical expertise will be designated as 'Technology Security Centers.' This takes into account the fast pace of technology development and the need for high specialization in technology analysis. The center will perform functions such as industrial analysis and technology review necessary for the designation and modification of national core technologies.
The management of institutions holding national core technologies will also be strengthened. The government plans to introduce a confirmation and registration system to quickly identify corporations expected to hold national core technologies and integrate them into the protection system. On-site surveys will be expanded to check the management status of holding institutions, and incentives such as simplified export reviews will be provided to corporations with excellent security capabilities to encourage the creation of a voluntary technology protection environment.
◇ Actively responding to evolving 'leak methods'... also supplementing the current system
In addition, the government will also promote the supplementation of the current M&A review system and overhaul the export review system. The M&A field will be newly established in the Industrial Technology Protection Expert Committee to conduct professional reviews of M&A, and the Minister of Trade, Industry and Energy will be able to issue orders to stop, prohibit, or restore unauthorized or unreported exports or M&As.
For export activities of core technologies with a low likelihood of technology leaks, some export review procedures may be simplified or exempted. A technology review ceiling system is being introduced to limit technology review processes to 45 days to support prompt evaluation processes, with the review period extendable once for 45 days. For universities and small enterprises with relatively weak security capabilities, tailored support such as security infrastructure establishment and consulting will be expanded.
An official from the Ministry of Trade, Industry and Energy explained, “Advanced industrial technology can have a major impact on economic security, due to its high potential for military use,” noting, “Globally, technology control is being strengthened to secure and protect technology.”