Amendment to the Act on Support for Technology Protection of Small and Medium Enterprises
If an infringement is determined, a recommendation for correction of the violation is issued.
Public announcement of infringing acts in case of non-compliance with recommendations

Starting from the 13th, if a case of technology infringement by a small and medium-sized enterprise occurs, the Ministry of SMEs and Startups will be able to directly investigate the facts and recommend correction if it is determined that an infringement has occurred.

Until now, administrative investigations and criminal inquiries regarding technology infringement by small and medium-sized enterprises (SMEs) have been conducted on the misappropriation of technology in subcontracting transactions and trade secret infringement under the Unfair Competition Prevention Act; however, there were many cases where reports could not be filed due to the absence of a subcontracting relationship or the burden of litigation. To address this, the Ministry of SMEs and Startups amended the "Act on Support for Protection of Technology of Small and Medium Enterprises" last June to establish a basis for the Ministry to take administrative measures.

The procedures and methods for the Ministry of SMEs and Startups’ administrative investigation into technology infringement are as follows.

First, if a small or medium-sized enterprise that has suffered technology infringement reports it in writing, the Ministry of SMEs and Startups may request an on-site investigation and submission of data from the reported company, and if the investigation results determine that an infringement has occurred, it may recommend corrective action for the violation. If the recommendation for corrective action is not followed, the name of the infringing company and the details of the infringing act will be published on internet websites, newspapers, etc.

If a person fails to submit materials during the investigation, refuses to investigate, or obstructs or evades the investigation, they may be subject to a fine of up to 10 million won.
The Ministry of SMEs and Startups plans to educate and explain the administrative investigation system to SMEs through technology protection support teams established in each regional SME office, and will actively promote it using various online and offline media. In addition, to ensure the swift resolution of cases, it plans to cooperate closely with relevant ministries participating in the 'TF to Eradicate Technology Theft from SMEs,' such as the Korean Intellectual Property Office and the National Police Agency, which are responsible for administrative investigations and criminal investigations.

Detailed explanations of this system and reporting forms can be found on the Ministry of SMEs and Startups website under 'Civilian Participation > Report Center > Report Technology Infringement'.

An official from the Ministry of SMEs and Startups emphasized, “This administrative measure is significant in that it allows small and medium-sized enterprises to receive relief based solely on the fact that their technology has been infringed, even without a business relationship,” adding, “The Ministry of SMEs and Startups will use this opportunity to demonstrate the government’s firm commitment to eradicating technology theft from SMEs.”