Over the past five years, an average of 1.6 cases of industrial technology leakage overseas occurred each month. Courts acquitted or gave suspended sentences in about 9 out of 10 cases.
The Federation of Korean Industries announced on the 8th that it submitted a petition to the Supreme Court Sentencing Commission requesting stricter punishment standards for technology leakage. This came two weeks after the Ministry of Trade, Industry and Energy announced on the 26th of last month through its "Advanced Strategic Industry Policy" that it would discuss raising sentencing standards for technology leakage with the prosecution and the Korean Intellectual Property Office.
According to a report released by the National Intelligence Service last month, 93 cases of industrial technology leaked overseas between 2018 and 2022. The Supreme Court Judicial Yearbook states that among 33 first-instance criminal trials for violations of the Industrial Technology Protection Act in 2021, 20 cases (60.6%) were acquitted and 9 cases (27.2%) received suspended sentences.
Taiwan amended its National Security Act in June last year to increase penalties. Those who leak national core technologies overseas face imprisonment from 5 to 12 years and fines ranging from 5 million to 10 million New Taiwan Dollars (approximately 200 million to 4.2 billion Korean Won). The United States adjusts crime levels based on the amount of damage, allowing for significantly increased sentences. The maximum imprisonment ranges from 188 to 405 months (15 years 8 months to 33 years 9 months).
In contrast, South Korea’s Industrial Technology Protection Act imposes imprisonment of at least 3 years and fines up to 1.5 billion Korean Won for leaking national core technologies overseas. For industrial technologies other than national core technologies, the maximum penalty is 15 years imprisonment or fines up to 1.5 billion Korean Won. The sentencing guidelines are even lower than the law. The "Sentencing Guidelines for Intellectual Property Crimes" applied by courts to technology leakage crimes set the basic imprisonment term for overseas leakage of trade secret infringement at 1 to 3 years and 6 months. Even considering aggravating factors, the maximum sentence is 6 years.
Choo Kwang-ho, head of the Economic and Industrial Headquarters at the Federation of Korean Industries, said, "The act of leaking industrial technology overseas is a serious crime that damages not only corporate interests but also national competitiveness," adding, "It is necessary to raise the sentencing standards for technology leakage and limit mitigating factors."
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