[After Technology Theft from SMEs]③Pan-Governmental Response Team Launched, But Specialization and Command System Still Need Improvement

<3>Challenges Ahead


Government Launches Pan-Governmental Response Team This Year

Six Ministries Establish Permanent Collaborative System

"Must Provide Substantive Relief, Not Just Serve as a Coordination Body"


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Editor's NoteTechnology theft against small and medium-sized enterprises (SMEs) is a destructive act that can topple the towers painstakingly built over years or even decades. While the government is accelerating its efforts to revise relevant systems, voices from the field are still filled with hardship and desperation. Due to the enormous financial burden that accompanies seemingly endless litigation, many victims choose silence or, even after narrowly winning a lawsuit, are ultimately forced to shut down. This article explores why such injustices persist and what challenges must be addressed in order to resolve them.

SMEs that fall victim to technology theft often encounter yet another obstacle after their technology is taken. Because the laws governing technology theft are scattered across various government ministries and have different application requirements, it is difficult for victimized companies to determine which law applies to them or which agency they should seek help from. As a result, many either miss the window for appropriate action or give up entirely on responding.

Reporting Channels Integrated, but "Need for Unified Expertise and Authority"

To address these issues, the government launched the "Government-wide Task Force to Eradicate Technology Theft" this January, bringing together six agencies: the Ministry of SMEs and Startups, the Ministry of Trade, Industry and Energy, the Fair Trade Commission, the Korean Intellectual Property Office, the National Police Agency, and the National Intelligence Service. The aim is to establish a system for responding to technology theft cases by connecting the functions that had been dispersed across multiple ministries.

As part of these efforts, the "SME Technology Protection Hotline," which launched in March, has started to operate relatively actively. This hotline unifies the previously scattered reporting channels of each agency, so when a victimized company files a report, legal experts provide guidance on the appropriate agency and relief procedures through consultations.

According to the Ministry of SMEs and Startups and other sources on the 11th, since the launch of the SME Technology Protection Hotline in March, the cumulative number of reports has reached 33, more than double the total for all of last year (16 cases). Of these, 14 have been forwarded to investigative agencies, and 7 are currently undergoing expert consultation or agency coordination.

No Yongseok, First Vice Minister of the Ministry of SMEs and Startups, is taking a commemorative photo with attendees at the launch ceremony of the Government-wide Task Force to Eradicate Technology Theft from Small and Medium Enterprises at the Foundation for Cooperation between Large Enterprises and SMEs in Jung-gu, Seoul, on January 22. Ministry of SMEs and Startups

Experts point out that in order for the government-wide task force to deliver tangible results, enhanced expertise and authority must go hand in hand. Park Heekyung, attorney at the Gyeongcheong Foundation, stated, "Technology theft cases have different legal requirements and complex facts, so accurate classification in the early stages is crucial," adding, "The expertise of consulting personnel needs to be improved."

There are also calls to integrate and redistribute administrative investigation and corrective order authorities, which are currently dispersed among different ministries. Lee Yongchan, attorney at Insight Law Firm, said, "At present, the government-wide task force primarily serves as a coordination body, with each ministry retaining its existing authority and only connecting or consulting on cases," and added, "To function as a real control tower, it is necessary to reallocate authority and establish a unified command structure."

Attorney Lee Yongchan of Insight Law Firm is being interviewed by The Asia Business Daily. Photo by Yoon Dongju

Enhancing the Effectiveness of the Mediation Committee: "Need for Mechanisms to Encourage Settlements"

Another challenge is to enhance the effectiveness of the "SME Technology Dispute Mediation and Arbitration Committee," which enables parties involved in technology theft disputes to attempt settlements before going to court. The committee was established in 2015 to reduce the lengthy legal process and high costs, but actual outcomes have reportedly fallen short of expectations.

According to the office of Assemblyman Seo Wangjin of the Innovation Party for the Nation, out of 256 cases submitted to the committee from 2015 to September 2025, 125 cases, or 48.8%, ended due to "failure or withdrawal of claims." This means that in many cases, one party completely refused to participate in the process or disagreements were so severe that even a mediation plan could not be proposed, resulting in the case being closed.

Experts agree that there must be sanctions against companies that are uncooperative during mediation procedures. Attorney Lee commented, "It is worth considering measures that would allow the Ministry of SMEs and Startups to initiate an administrative investigation ex officio if the perpetrating company fails to participate in mediation in good faith." Attorney Park suggested, "If a party fails to attend the mediation process, a certain level of psychological pressure could be applied by, for example, prioritizing the victim's claims during the technology infringement analysis process."

Meanwhile, the Ministry of SMEs and Startups plans to strengthen the effectiveness of the mediation committee by allowing relatively simple cases to be handled by a single-member panel, instead of the existing 3- to 5-member panels. Additionally, in small claims cases where the applicant's claims are deemed valid, if the respondent unreasonably rejects the mediation proposal, the panel will be able to issue a binding decision ex officio, introducing a so-called "ex officio mediation" system.

A Ministry of SMEs and Startups official said, "For SMEs with limited financial resources, utilizing mediation can be far more efficient than litigation," and added, "We will support companies in choosing the most appropriate procedure between litigation and mediation, and, by referring to expert recommendations, we will continue to foster successful cases like the SevenBroy-Daehan Flour Mills case."

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