Semiconductors Account for Over Half
The Ministry of Trade, Industry, and Energy revealed on Jan. 6 that last year a total of 23 cases of overseas leakage of industrial technology, including “national core technologies,” were detected, marking an increase of 3 cases from the previous year. The government designates as national core technologies those with high technical and economic value or those related to industries with high growth potential and that their leakage overseas could pose a significant threat to national security and the economic development of the country.
Technologies such as sub-30 nanometer class DRAM and AMOLED display technology, across various fields including semiconductors, displays, electrical and electronic engineering, shipbuilding, and nuclear energy, have been designated as national core technologies, totaling approximately 70.
The number of detected industrial technology leakages has been increasing annually, from 14 cases in 2019 to 20 cases in 2022 and 23 cases in 2023. Notably, the proportion of cases involving semiconductors has surged. While only 3 cases of semiconductor leakage were detected up to 2019, the figure jumped to 15 cases last year, the highest since the Ministry started managing related statistics in 2016.
The methods of technology leakage are also diversifying. The Ministry explained that suspicions of illegal technology outflows have arisen during the process of foreign companies establishing operations in Korea and hiring technical personnel. There have also been attempts by Chinese private equity funds to acquire advanced technologies through methods such as attempting to acquire MagnaChip, the parent company of South Korea’s second-largest semiconductor firm, in the United States.
The government argues that there is a pressing need to strongly suppress the overseas leakage of key industrial technologies through amendments to the Industrial Technology Protection Act. The recently passed amendment to the Industrial Technology Protection Act through the National Assembly Standing Committee includes a “determination order” system, which allows the government to initiate a determination procedure to decide whether a certain technology is a national core technology, even if the company does not apply for it itself.
The amendment also changes the subject of punishment for overseas technology leakage from “objective crimes” to “intentional crimes.” According to Supreme Court precedents, the prosecution must prove that the national core technology was intentionally removed and handed over abroad “with the intention of use in a foreign country.” The amendment allows for punishment simply by proving the intentional removal.
An official from the Ministry of Trade, Industry, and Energy said, “The amendment will be implemented six months after its promulgation, and we expect that it will help reduce the leakage of industrial technologies.”