Strict penalty is needed for industrial spies

The Sentencing Commission of the top court must deliberate on fixing stronger guidelines to reflect the growing harms and dangers of industrial spying.

Police arrested 77 workers suspected of industrial espionage activities after an intensive three-month crackdown. Of the 35 cases, eight were related to theft and leakage of technology secrets to foreign countries, including China.

The stealing skills are as surprising as the jump in the number of cases. A South Korean employee working in a subsidiary of a Korean company in China transferred to a Chinese IT company after taking photos of confidential corporate documents and files. A Chinese researcher who has worked at a research center of a large hospital in Seoul since 2015 sent sensitive digital files on robotic technologies to China.

Considering the lead-up to their defection, more could be tempted to act as corporate spies or sell information to Chinese companies. It turned out that South Korean workers in China had been offered generous living expenses and compensations, like tuition fees for their children and housing expenses, from the Chinese company they handed over sensitive information to. The Chinese employee who worked at the hospital in Seoul was found to deliver the robotic technology in return for funding from China’s Thousand Talents Program. The program has been suspected of fostering industrial spies for China in developed countries.

If Beijing offers rewards for illicit information, many Chinese working in prominent IT companies around the world could be tempted. South Korean authorities must build a meticulous protection mechanism to prevent such thefts and leaks. Of the leaked technologies, there were some the government subsidized with 10 billion won ($7.7 million).

The National Intelligence Service discovered 93 industrial thefts to foreign countries over the last five years. The losses amount to a whopping 25 trillion won. Chipmaking makes the primary target. Samsung Electronics is under constant danger. Due to worsening harm, the Federation of Korean Industries has petitioned to the Supreme Court’s Sentencing Commission to toughen the sentencing guidelines for crimes related to technology thefts. Under the current guideline, the act of stealing corporate secrets can be punished with 12 to 42 months in jail, but many walk off on probation if they show remorse. Due to the soft penalties, many would be tempted to make big money by selling technology secrets.

The United States punishes economic espionage agents with maximum 405 months in prison. If Korea applies the U.S. guidelines, it can punish trade secret thefts with an imprisonment of 10 to 21 years in jail. The presidential office, as well as the law enforcement offices, the trade ministry, and the intellectual property office, all demand tougher punishment for economic espionage. The Sentencing Commission of the top court must deliberate on fixing stronger guidelines to reflect the growing harms and dangers of industrial spying.