[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"


Eff

Editor's NoteTechnology theft from small and medium-sized enterprises (SMEs) is a destructive act that can topple the foundations built over many years or even decades in an instant. While the government is accelerating efforts to improve related systems, the voices from the field remain fraught with hardship and frustration. The enormous costs associated with endless legal battles often force victims into silence, or in many cases, companies go out of business even after narrowly winning their cases. This article examines why such injustices persist and what challenges must be addressed to resolve them.

SMEs that fall victim to technology theft face another set of challenges after their technology is stolen. This is because the laws regulating technology theft are scattered across multiple government agencies, each with different requirements for application, making it difficult for victims to determine which laws apply to them or which agencies they should seek assistance from. As a result, many companies miss the appropriate window to respond or give up on taking action altogether.

Reporting Channels Unified, But "Need for Professionalism and Centralized Authority"

To address these issues, in January the government launched the "Government-wide Task Force to Eradicate Technology Theft from SMEs," involving six agencies: the Ministry of SMEs and Startups, Ministry of Trade, Industry and Energy, Fair Trade Commission, Korean Intellectual Property Office, National Police Agency, and National Intelligence Service. The aim is to link functions previously scattered across different ministries and establish a coordinated response system for technology theft cases.

As part of these efforts, the "SME Technology Protection Hotline," launched in March, appears to have begun operating actively. The hotline consolidates previously fragmented reporting channels into a single point of contact. When a victim reports a case, legal experts provide counseling and guide the company to the appropriate agency and relief procedures.

According to the Ministry of SMEs and Startups and other sources on the 11th, since the SME Technology Protection Hotline was launched in March, a total of 33 reports have been filed, more than double last year's total of 16. Of these, 14 cases were referred to investigative agencies, and 7 cases are currently undergoing expert consultation or inter-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 SMEs" held on January 22 at the Foundation for Large and Small Business Cooperation in Jung-gu, Seoul. Ministry of SMEs and Startups

Experts point out that, for the government-wide task force to deliver tangible results, it must simultaneously strengthen both professionalism and authority. Lawyer Park Heekyung of the Kyungcheong Foundation said, "Technology theft cases differ in their legal requirements and often involve complex facts, so accurate case classification at the initial stage is crucial. The expertise of counseling personnel needs to be improved."

There is also the opinion that powers such as administrative investigation and correction orders, which are currently dispersed among ministries, should be consolidated and redistributed. Attorney Lee Yongchan of Insight Law Firm stated, "Currently, the government-wide task force mainly plays the role of an administrative coordination body, as each ministry retains its existing authority while only coordinating and linking cases. To function as a true control tower, it is necessary to reallocate authority and establish a unified command system."

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

Mediation Committee's Effectiveness Must Be Enhanced... "Mechanisms to Encourage Settlement Needed"

Another challenge is improving the effectiveness of the "SME Technology Dispute Mediation and Arbitration Committee," which encourages settlements before litigation in technology theft disputes. Although the Committee was established in 2015 to reduce lengthy court battles and high legal costs, its actual achievements have fallen short of expectations.

According to the office of Assemblyman Seo Wangjin of the Innovation Party, of the 256 cases submitted to the Committee from 2015 to September 2025, 125—representing 48.8%—were concluded as "unsuccessful or withdrawn." This means that in nearly half the cases, one party either refused to participate in the proceedings entirely or disagreements were so severe that even a mediation proposal could not be prepared.

Experts unanimously agree that sanctions are needed for companies that are uncooperative during mediation procedures. Attorney Lee said, "It is worth considering measures that would allow the Ministry of SMEs and Startups to launch administrative investigations ex officio when the offending company fails to participate in good faith in the mediation process." Lawyer Park advised, "If a party fails to appear for mediation, psychological pressure could be applied by, for example, prioritizing the victim company's claims during the technology infringement analysis."

Meanwhile, the Ministry of SMEs and Startups plans to improve the system to enhance the effectiveness of the Mediation Committee by allowing single-member mediation panels to handle relatively simple cases, instead of the conventional panels of three to five members. In addition, the Ministry will introduce an "ex officio mediation" system, allowing the panel to make decisions at its own discretion when the respondent unjustifiably rejects the mediation proposal in small-claims cases where the applicant's claims are deemed reasonable.

An official from the Ministry of SMEs and Startups said, "For SMEs with limited financial resources, using the mediation system can be far more efficient than litigation. We will continue to support companies in choosing the most suitable procedure between litigation and mediation, and, based on expert recommendations, strive to create more success stories like the Sevenbrau-Daehan Flour Mills case."

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