'Punish One to Warn Many' for Semiconductor Tech Leaks... MOTIE to Get Special Judicial Police Authority

Expand Reviews of National Core Technologies to Include Sales or Closures of Overseas Subsidiaries
Strengthen Recovery of Criminal Proceeds... Address Security Gaps at SMEs and Universities

Yonhap News Agency

The government will strengthen investigations and penalties for the leakage of advanced-industry technologies, including semiconductor and display technologies. It will grant the Ministry of Trade, Industry and Energy (MOTIE) special judicial police authority and expand the scope of criminal proceeds from technology leaks subject to forfeiture and collection. It will also consider incentives to prevent key personnel in fields such as semiconductors from leaving for overseas jobs, as well as measures to provide information to verify whether they have changed jobs.

Introducing Special Judicial Police Authority for Technology Leaks

MOTIE said it discussed measures to strengthen technology protection at the 76th Industrial Technology Protection Committee meeting, chaired by Minister Kim Jung-kwan, on October 19. In addition to ex officio members of the committee, the meeting was attended by the Korean National Police Agency, the Central Investigation Agency, the Public Prosecution Office, and the Defense Acquisition Program Administration. The aim was to strengthen coordination between ministries responsible for technology protection policy and agencies that investigate and probe technology leak cases.

The government has decided to grant MOTIE special judicial police authority over technology leak cases. The goal is to strengthen the technology leak investigation system by enabling MOTIE, which has expertise in industrial technologies, to participate directly in investigations. The government will also expand information sharing among relevant agencies so they can respond swiftly when a leak occurs.

It will also strengthen financial penalties for technology leaks. The government will expand the scope of criminal proceeds subject to forfeiture and collection so that the resulting penalties outweigh the gains from leaking technology. It will also pursue measures to ensure that damages include, at a minimum, the costs incurred by the victimized company to develop the technology in question.

The government will also develop measures to improve courts' expertise in adjudicating technology leak cases. It will open a public discussion on the need to raise the Supreme Court's sentencing guidelines and establish sentencing guidelines for fines. It will also pursue a system that allows courts to ask MOTIE to verify during trial proceedings whether the technology in question qualifies as industrial technology.

The government will expand advance safeguards for national core technologies. It will pursue measures to designate technologies requiring protection as national core technologies in a timely manner and to include in the scope of review transactions such as the sale or closure of overseas subsidiaries, as well as mergers and acquisitions (M&A) pursued by foreign nationals through domestic corporations or organizations.

Preventing the Loss of Key Semiconductor Talent

The government is also considering measures to prevent key talent in advanced industries, including semiconductors, from leaving for overseas jobs. Based on requests made by companies at on-site meetings, the government will discuss with relevant ministries ways to improve the system, including incentives for key personnel and the provision of information to verify whether they have changed jobs. However, it intends to design the system in a way that minimizes any potential infringement of constitutional rights, including the freedom to choose one's occupation.

The government will also strengthen oversight in areas that are relatively vulnerable to security risks, such as small and medium-sized businesses and universities. It will expand the frequency and scope of technology protection inspections and enable the government to issue orders requiring corrective action when companies fail to implement necessary improvements. It will expand vulnerability assessments and support for security-vulnerable partner companies, and strengthen security management for research and development (R&D) projects involving national core technologies.

The government is revising its technology protection system because overseas technology leaks have continued, particularly in advanced industries. The number of overseas industrial technology leaks uncovered by the National Intelligence Service was 22 in 2021, 20 in 2022, 23 in each of 2023 and 2024, and 19 in 2025. Recent parliamentary audits have also raised concerns that risks of technology leaks, including key semiconductor personnel taking jobs overseas, need to be managed more thoroughly.

The government plans to include these measures in amendments to the Industrial Technology Protection Act and the Act on Special Measures for Strengthening the Competitiveness of and Protecting National High-Tech Strategic Industries, and to introduce the bills in October. It will also incorporate relevant measures into the sixth Comprehensive Plan for Industrial Technology Protection, which is being prepared a year ahead of the original schedule, and plans to announce the plan by the end of 2026.

Minister Kim said, "Technology leaks are a serious problem that can instantly undermine the industrial competitiveness that the nation and businesses have built up over many years and at enormous cost, while also threatening national security. We will carry out the introduction of the amendment bills and the announcement of the comprehensive plan without a hitch, and ensure that our nation's industrial technologies are protected."

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