Tech Leaks
Korean small and medium enterprises (SMEs) are exposed to an increasing number of cases of industrial espionage, and industrial spies are targeting their commercial technologies rather than source technologies owned by advanced countries these days.
The National Industrial Security Center announced on March 25 that Korean companies were subject to 253 cases of industrial espionage during the recent six years with SMEs and venture firms involved with 170 of the cases. The number was limited to 45 for large corporations.
According to the Small & Medium Business Administration, 12.1 percent of Korean SMEs experienced illegal technology acquisition within three years and the average damage per case amounted to 1.5 billion won a year. Fully 84 such activities were committed in the electrical and electronics industry, followed by mechanical (75), information and communications (27), chemical (13), biotech (eight), and others (46).
Security experts point out that SMEs need to be more invested in information security and technology protection, as more and more foreign companies are targeting them. Korean SMEs have focused on the application of advanced technology developed by advanced countries rather than that developing their own original technologies. Such efforts have resulted in abundant globally-competitive commercial technologies.
“Second movers like China and Taiwan prefer commercial technologies allowing immediate production,” one of them commented, adding, “Unfortunately, Korean SMEs are likely to suffer more from industrial espionage over time for this reason.”