Repeated 'Technology Overseas Leakage'... What Are the Prevention Measures?

Samsung Electronics Subsidiary Employee Starts New Company and Leaks Technology to China... Prosecutors Detain and Indict
Corporate Executive Caught Selling Technology to China by Police
593 Cases of Technology and Trade Secret Leaks Detected from 2017 to 2021
Ministry of SMEs Supports Small Businesses through 'Technology Protection Leading Company Development Project'
Federation of Korean Industries Forms Economic Security TF Team to Prevent Technology Leaks
Experts Say "Related Laws Need to Be Clarified"

Cases of domestic technology being leaked overseas have been increasing recently. The photo was taken on February 9 at COEX in Gangnam-gu, Seoul, during 'Semicon Korea 2022.' This event showcases the latest semiconductor technologies from over 500 semiconductor companies worldwide.

[Asia Economy Reporter Kang Woo-seok] Recently, as cases of illegal leakage of domestic companies' technology overseas have been repeatedly detected, urgent measures to address the issue are becoming necessary.

On the 25th, the Defense Industry and Industrial Technology Crime Division of Suwon District Prosecutors' Office (Chief Lee Chun) arrested and indicted seven individuals suspected of selling domestic semiconductor cleaning equipment technology to Chinese companies and research institutes, earning hundreds of billions of won.

They worked at 'Semes,' a subsidiary of Samsung Electronics, and after resigning, established new companies to extract the technology. They stole most of the technology, including design blueprints, parts lists, chemical piping information, and software, by not returning technology-related information upon resignation or by receiving parts containing technical information from partner companies. Additionally, they attracted investment from Chinese companies with products made using the stolen technology and later established a joint venture in China, promising to receive shares in exchange for transferring all related technology.

'Semes' reportedly suffered damages worth approximately 218.8 billion won due to the technology leakage.

On the 24th, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency sent a former executive of 'Bodyfriend,' a massage device manufacturer, to the prosecution with an indictment opinion for allegedly selling proprietary technology to a Chinese company on the 17th. The technology was reportedly developed by 'Bodyfriend' after investing hundreds of billions of won over several years.

According to the '2017-2021 Industrial Technology and Trade Secret Leakage Investigation Status' by the National Police Agency, from 2017 to 2021, there were 593 detected cases of leakage, and 1,638 people were arrested on related charges. Among these, 540 cases occurred in small and medium-sized enterprises.

Furthermore, from 2017 to 2020, cases of overseas leakage of corporate technology and trade secrets occurred in double digits annually.

As global competition for technological supremacy accelerates in countries such as the United States and China, the leakage of corporate technology and trade secrets is a matter directly linked to the national economy, making the establishment of preventive measures urgently necessary.

The Ministry of SMEs and Startups has implemented the 'Leading Technology Protection Company Development Project' since the 23rd. Photo by Lee Young, Minister of SMEs and Startups

In response, the Ministry of SMEs and Startups (MSS) launched the 'Technology Protection Leading Company Development Project' on the 23rd. Considering the high incidence of technology leakage cases in small and medium-sized enterprises, the plan is to measure the technology protection capabilities of SMEs and foster technology protection leading companies through customized support for each company.

The MSS has developed a technology protection level verification model classified into five stages based on the expected extent of corporate damage in the event of technology leakage or infringement incidents. SMEs that reach Level 1 Excellence (75 points or higher) are selected as technology protection leading companies. The technology protection level verification is conducted by experts who quantitatively evaluate the company's technology protection capabilities on-site according to the level verification indicators.

Companies selected as technology protection leading companies receive support from the MSS, including education, legal services, consulting, and business support to strengthen basic capabilities and advance technology protection levels.

The MSS plans to foster more than 300 technology protection leading companies by 2027 through this program.

The Federation of Korean Industries (FKI) also established an 'Economic Security Task Force (TF) Team' on the 23rd to prevent technology leakage in new industries such as semiconductors.

The Economic Security TF Team plans to quickly identify the status of advanced technology leakage and hold several expert forums to develop practical economic security measures. With the establishment of the Economic Security Secretary position in the Yoon Seok-yeol administration, they expressed their intention to maintain direct communication with the government.

Experts have suggested that current laws related to technology leakage crimes need to be clearer. Professor Kim Tae-gi of Dankook University's Department of Economics stated, "The laws related to technology leakage crimes need to be clearer. Because the laws are not clear, courts respond very passively, and even when technology leakage charges are clear, suspects are sometimes released due to insufficient evidence."

He added, "The punishments themselves are very weak. In other countries, punishments are set very severely. There is a need to increase the severity of punishments."

Professor Kim also emphasized that investigations into technology leakage crimes should be more specialized and focused. He said, "The investigative function for technology leakage crimes should also be strengthened. If an investigative system is established to respond systematically to specific crimes, it is believed that technology leakage can be prevented."