Ministry of SMEs and Startups Briefing on the 17th
Orders Review of Fines Linked to Revenue and Profits
Instructs Ministry to Reconsider Penalty Levels
President Lee Jae-myung has ordered a comprehensive review of the overall level of penalties, stating that the fines for eradicating technology theft from small and medium-sized enterprises are excessively low. He also emphasized the need for substantial sanctions linked to corporate revenue or criminal profits.
On the 17th, during a Ministry of SMEs and Startups briefing held at the Government Sejong Convention Center, President Lee remarked, "Technology theft feels like a war between nations because the more you take, the more successful you become," adding, "We need to respond properly, but a maximum fine of 2 billion won is far too lenient."
President Lee Jae-myung is speaking at the Ministry of Industry, Intellectual Property Office, and Ministry of SMEs and Startups briefing held at the Government Sejong Convention Center on the 17th. Photo by Yonhap News
Previously, Minister Han Seong-sook of the Ministry of SMEs and Startups announced plans to raise the level of sanctions in administrative investigations regarding technology theft from small and medium-sized enterprises. The ministry intends to upgrade the current corrective recommendation to a corrective order and impose fines of up to 2 billion won for serious violations.
In response, President Lee stated, "Punishment is not very effective in Korean society. Investigations require tremendous resources, and even if someone is punished, they often receive a suspended sentence, so there is no real sanction. If someone earns 100 billion won by stealing technology but only has to pay a 2 billion won fine, I would do it myself," he pointed out.
He further stated, "Fines should be set as a certain percentage of corporate revenue or as a multiple of the profits gained from technology theft in order to be truly effective."
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