Korea to Strengthen Industrial Technology Protection and Penalties for Leaks

South Korea’s Ministry of Trade, Industry and Energy (MOTIE) announced on October 7 that it will expand support for security infrastructure and consulting services to protect small and medium-sized enterprises (SMEs) and universities from technology theft.

MOTIE Increases Support for SMEs and Universities

To address vulnerabilities in the current protection system, MOTIE plans to increase financial and technical support for SMEs and universities, including the installation of security equipment and professional consulting. The ministry also aims to tighten management of core personnel to prevent leaks from within. According to the ministry, these measures are part of a broader shift to modernize its response to intelligent, evolving theft methods, including the unauthorized use of artificial intelligence and risks associated with corporate overseas expansion.

The ministry also intends to strengthen financial recovery for victimized companies. Proposed reforms include expanding the scope of assets subject to confiscation and allowing courts to recognize the costs incurred by a company for technical development as part of the total damages. The ministry will establish legal grounds for courts to request official verification from MOTIE regarding whether specific stolen data constitutes protected "industrial technology," ensuring that perpetrators cannot evade sentencing.

Gap Between Administrative Measures and Victim Relief

The government’s new initiative arrives amid data showing that current administrative remedies often fail to provide timely relief to affected companies. According to data provided by the Fair Trade Commission (FTC) to Representative Park Hong-bae of the Democratic Party, the average time required for the commission to issue sanctions—such as fines or corrective orders—for technology misappropriation was 703 days between 2022 and August 2026.

The administrative burden is further complicated by the limited efficacy of government interventions. Data from the Ministry of SMEs and Startups, disclosed by Representative Kim Do-eup, shows that of 69 administrative investigations into technology infringement conducted between 2022 and September 2026, only five cases (7.2%) resulted in corrective recommendations or settlements. The majority—64 cases—were closed without action due to factors such as withdrawal of the complaint or difficulties in investigation.

Government Agencies Collaborate to Punish Leak Offenders

During the October 6 National Assembly audit, lawmakers emphasized the need for closer collaboration between MOTIE, the National Intelligence Service, the National Police Agency, and the Ministry of Justice. Minister of Trade, Industry and Energy Kim Jeong-gwan stated his commitment to these reforms, noting that the government intends to prevent leaks through an integrated protection system while ensuring that offenders face strict punishment to deter future attempts.

Beyond the ministry’s internal plans, political pressure remains high to address the “institutional vacuum” that exists until the implementation of a Korean-style evidence discovery system, which is scheduled for 2028. The ministry is currently preparing the 6th Comprehensive Plan to codify these systemic improvements and enhance interagency information sharing.