As the number of cases of industrial technology leaks abroad has increased recently, causing national losses, companies are increasingly required to check whether their technology is recognized as a national core technology in order to protect it. The government is pursuing policies to strengthen technology leak punishment and strengthen technology protection through revisions to the Industrial Technology Protection Act.

At the World Security Expo held at KINTEX on the 20th, the Ministry of Trade, Industry and Energy and the Korea Industrial Technology Protection Association (KAIT) conducted the '2024 Industrial Security Trend Security Education' for industry, academia, research institutes, industrial security officials, and general participants.

According to the National Police Agency data presented by Attorney Lee Han-gyeol of Yulchon Law Firm, who presented on the topic of cases of industrial technology leaks and countermeasures, the number of cases of overseas technology leaks sent in 2023 increased by 10 from 2022 to 22. The main affected technologies are displays, semiconductors, machinery, shipbuilding, and robots. Of these, there were 9 cases of display-related technology leaks. According to the Ministry of Trade, Industry and Energy, the amount of damage from technology leaks is estimated to be approximately 26 trillion won from 2018 to 2022 (National Intelligence Service).

Major cases of technology leaks include cases through mergers and acquisitions (M&A), cases by former employees, and cases through partner companies. Although there is no specific research data, the outflow status by country shows that China's share is increasing.

For example, brothers who stole the core technology of semiconductor cleaning equipment developed by Samsung Electronics subsidiary Semes in 2022, made equipment worth 71 billion won, and transferred it to China were sentenced to 10 years in prison, and the company was ordered to pay 1.5 billion won in damages. This is a case proven to be a technology leak case because the setting values and interlock information of supercritical cleaning equipment were designated as national core technologies and because it was a leak of trade secrets. The sentences for the employees were increased compared to the first trial, and the semiconductor equipment manufacturing company was also sentenced to a fine of 1.5 billion won, overturning the original court's fine of 1 billion won.

In addition, in the case of two partner companies that jointly developed 3D lamination technology, Company B, which had been supplying manufacturing equipment to display manufacturing giant Company A, established a front company to sell equipment to a Chinese company when sales growth slowed, and supplied it to the Chinese company.

After the fact was revealed, Company A claimed that Company B had leaked trade secrets regarding 3D lamination technology and had leaked national core technologies and cutting-edge technologies. Company B was found not guilty in the first trial, but in the second trial, it was ruled that a company had no right to share information such as manuals with other companies based on a confidentiality agreement, and the CEO of Company B was sentenced to three years in prison for trade secret infringement.

The lawyer emphasized, “When dealing with overseas technology leak cases, it is important to understand the difference between trade secrets and industrial technology.” Trade secrets are established as long as the requirements are met, and technical information or management information can also be included. However, industrial technology refers to technology that has been designated and notified by law. The Act on Prevention of Leakage and Protection of Industrial Technology states that industrial technology exists in the form of trade secrets, but also as public intellectual property rights such as patents, and that it is significant in relation to punishment for failure to obtain approval or report.

National core technologies are included in industrial technologies. As stated in the Industrial Technology Protection Act, national core technologies are protected as essential, separate from the protection of trade secrets. In the case of national industrial technologies, technologies that receive government support require approval, and those that do not receive support are subject to reporting requirements.

The lawyer explained, “In overseas technology leak cases, it is important to determine whether it is a trade secret, industrial technology, or national core technology,” and “Although the characteristics can be applied in parallel and overlapping, in the case of industrial technology, even if there are no requirements to be managed as a trade secret, if it is satisfied with the technology designated in a specific notice, it can be protected as industrial technology.”

The lawyer recently pointed out the battery sector as a field where technology leaks are a problem. There are many movements to steal domestic battery personnel, especially in Europe, and there are cases where Chinese companies plant leak helpers or researchers in universities. It is also necessary to be careful about cases where information on core products or assembly processes is received through consulting firms such as research firms, or where samples from large companies are requested and distributed to partner companies.

Meanwhile, the government is pushing for stronger punishment for technology leaks and strengthening management and review through the revision of the Industrial Technology Protection Act. In November of last year, the 'Inter-Ministry Joint Response Team for Technology Leaks' was launched. Last December, the Ministry of Trade, Industry and Energy said at the 47th Industrial Technology Protection Committee, “In order to protect industrial technology, strict punishment of leakers is most important,” and “The Industrial Technology Protection Act needs to be revised as soon as possible, and sentencing standards need to be made more realistic.”

To this end, the Ministry of Trade, Industry and Energy has come up with a plan to strengthen the scope of punishment as a preventive measure. First, the elements of punishment have been expanded from a crime of intent to a crime of intention. The fine for overseas technology leakage crimes has been increased from the current 1.5 billion won or less to a maximum of 6.5 billion won or less for national core technologies and up to 3 billion won for industrial technologies. The scope of infringement has been expanded so that technology leakage brokers can also be punished, and the limit of punitive damages for infringement has been increased from 3 times to 5 times.

In addition, a 'determination application notification system' will be newly established, which will allow the government to initiate a decision process to determine whether a specific technology is a national core technology without the individual application of the company. This is a measure not only to prevent intentional technology leaks in advance, but also to prevent illegal exports due to negligence.

According to the Ministry of Trade, Industry and Energy's 2024 Industrial Technology Protection Policy Direction, the 'Trade Technology Security Strategy' will be announced in the first half of the year. In the second half of the year, the '5th Comprehensive Industrial Technology Protection Plan' for improving the mid- to long-term national core technology protection system will be announced.