Korea sees 96 overseas technology leaks over 5 years

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A total of 96 key industry technologies in South Korea, including national core technologies from major companies, universities, and research institutes, have been leaked overseas from 2019 to 2023, data showed on Tuesday.

According to data from the National Intelligence Service on Tuesday, the number of industrial technology leaks surged 64 percent over the five years from 14 in 2019 to 23 in 2023, totaling 96 cases during the period. Of them, 33 cases involved national core technologies.

More than half of the total industrial technology outflows occurred in small and medium-sized enterprises (SMEs), igniting concerns about the inadequate measures in place to prevent technology leaks at SMEs.

Large companies accounted for 37 of the 96 leaks, with 8 cases reported in universities and research institutes over the five-year period.

By industry, the semiconductor and display sectors were particularly affected by technology leakage. Out of the total 96 cases, semiconductors accounted for 38 cases and displays for 16 cases. Among the 33 cases of national core technology leakage, there were 10 semiconductor cases and five display cases.

The Ministry of Trade, Industry and Energy is pushing to amend the Act on Prevention of Divulgence and Protection of Industrial Technology, which will increase fines to up to 6.5 billion won ($4.88 million).

The amendment, however, is currently stalled in the Legislation and Judiciary Committee due to opposition from opposition party lawmakers.

Meanwhile, a survey by the Fair Trade Commission (FTC) showed that 49 companies were newly included in the affiliated companies among Korean business groups with assets of 5 trillion won or more over the last three months. The survey showed that 90 were excluded, resulting in a net decrease of 41 companies.

The business groups with the largest number of newly included companies were SK (6 companies), Hyundai Motor (4 companies), and Hanwha, LS, and DL (each with 3 companies). The groups with the largest number of excluded companies were Nongshim (10 companies), SK and Kakao (each with 8 companies), and Bosung (5 companies).