"My Life's Work Was Stolen in a Year" Company Plunged Off a Cliff [After SME Technology Theft]①

<1> Endless Technology Theft from SMEs

NC Power Provided Core Code, but Contract Fell Through
Competitor Later Released Similar Technology

474 Cases of SME Technology Theft Last Year
Damages Reached 2.53 Billion Won... Rising Every

Editor's NoteTechnology theft from small and medium-sized enterprises (SMEs) is a destructive act that can topple years, even decades, of hard work in an instant. While the government is accelerating reforms to related systems, voices from the field remain desperate and distressed. Many choose silence due to the enormous costs associated with endless legal battles, or even after barely winning a lawsuit, ultimately close down. We examine why these injustices persist and what challenges need to be addressed.

"I thought my dream was finally coming true, but in a moment, I felt like I had fallen off a cliff."

Shim Jaeyong, CEO of NC Power, is being interviewed by The Asia Business Daily. Photo by Yoon Dongju

On June 11, at a cafe in Jung-gu, Seoul, Shim Jaeyong, CEO of NC Power, recalled "that incident" from five years ago. In February 2021, CEO Shim was offered a contract by major domestic construction company A to provide an artificial intelligence (AI)-based incinerator management technology. This was a large-scale project, with A, which was preparing to transform from a construction company into a comprehensive environmental enterprise, planning to introduce the technology to 13 incinerators it had acquired, with future overseas expansion in mind.

CEO Shim met directly with A's representatives to introduce NC Power's technology in detail, providing related materials and even the core code. However, not long after, A notified him that the contract would not go forward. Just one year later, A released a technology almost identical to NC Power's and registered a related patent.

CEO Shim said, "I devoted 15 years of my life to developing this technology since 2008, only to have it stolen within a year and feel like I was thrown off a cliff," adding, "After the incident, investors withdrew their support, the company shrank rapidly, and nearly all employees left, leaving just one person. I still live with the psychological pain."

474 Cases of Technology Infringement Annually... Damages Reach 2.5 Billion Won

Cases of SMEs having their technologies unfairly taken during transactions with large corporations continue to emerge. Many companies exploit the fact that most victimized SMEs find it difficult to even initiate disputes, due to concerns about lengthy litigation, the risk of losing business relationships, and the burden of proof, resulting in repeated cases of unfair use of SME technologies.

According to the "2025 Technology Protection Status Survey" conducted by the Ministry of SMEs and Startups, the annual number of technology infringement cases involving domestic SMEs is estimated at around 474. As technology theft methods become more sophisticated, the scale of damages is increasing. The average damage suffered by SMEs grew from 1.49 billion won in 2023 to 2.53 billion won in 2025.

Nevertheless, there are still not many SMEs responding proactively. In the same survey, 27.8% of companies that experienced technology infringement answered that "they took no particular action after the damage."

Shutting Down After Enduring Over Three Years of Litigation

The industry points to the lengthy litigation periods, difficulties in proving damages, and the woefully inadequate compensation as decisive reasons why SMEs do not actively respond to technology theft.

For SMEs lacking dedicated legal staff and sufficient funds, the time required for lawsuits is fatal. As time passes, litigation costs snowball, cash flow dries up, and inevitably, business suffers. According to the Ministry's survey, it takes an average of over one year to reach a first-instance verdict in a technology theft case, but the win rate is only 32.9%, significantly lower than the 55.75% win rate for general civil litigation in 2021.

Image of the bamboo salt melting furnace supplied by CDS Global to Insanga. CDS Global

CDS Global, a heat treatment equipment manufacturer, also decided to shut down after more than seven years of legal battle with bamboo salt producer Company B, which began in 2018. In 2009, CDS Global supplied Company B with a "bamboo salt fusion furnace," a device that heats salt columns at temperatures over 1,500°C, and provided the blueprint, which it managed as a trade secret. Seven years later, Company B used this blueprint to register a patent for a similar facility structure and even went public on KOSDAQ.

CDS Global immediately filed a lawsuit and in 2023 won a complete victory in the second trial at the Patent Court. However, Company B appealed the ruling and repeatedly submitted supplementary appeal briefs, so the case has been pending before the Supreme Court for over three years. During this period, CDS Global's founder and chairman, Kim Jiweon, passed away, and the company's business declined rapidly, ultimately leading to closure.

Patent attorney Kim Chanmi, who handled the case, explained, "Even if the opposing company delays the litigation as long as possible until the patent expires and profits in the meantime, the victimized company is left with no practical recourse," adding, "As news of the lawsuit spread, we lost a delivery opportunity worth 1.3 billion won, and from the second trial onward, we had to use our own funds to cover litigation costs, ultimately deciding to close the business."

This content was produced with the assistance of AI translation services.