Tougher Penalties for Industrial Espionage in Korea: A Necessary Step to Protect Trade Secrets

Key Highlights :

1. There have been a number of cases of Korea's trade secrets being leaked to companies overseas, and this has prompted businesses to seek tougher punishments for industrial espionage.

2. The big business lobby group, Federation of Korean Industries (FKI), has recently sent a letter to the Supreme Court's Sentencing Commission, asking for revisions to existing sentencing guidelines. They believe that the current punishments given to people who leak trade secrets are not harsh enough.

3. There have been a number of cases of trade secrets being leaked to other countries, and this has threatened the survival of Korean companies and the nation's competitiveness. However, people who steal trade secrets have received only light punishments.

4. In response to growing calls for stricter measures, lawmakers of both the ruling and opposition parties have proposed bills recently to impose harsher punishments on people who leak industrial technology to foreign countries.

     The leaks of Korea's trade secrets to companies overseas have become increasingly frequent in recent years, prompting domestic businesses to call for tougher punishments for industrial espionage. According to industry officials, the Federation of Korean Industries (FKI) has recently sent a letter to the Supreme Court's Sentencing Commission, asking for revisions to existing sentencing guidelines.

     Under the current Act on Prevention of Divulgence and Protection of Industrial Technology, people who leak core technology, designated by the government, to companies in other countries are subject to at least three years in jail or a fine of up to 1.5 billion won ($1.1 million). Those who leak other types of industrial technologies are subject to up to 15 years in jail or a maximum fine of 1.5 billion won. However, only two out of 33 violators of the law in 2021 received jail terms and penalties, according to data compiled by the Supreme Court. This is because the current sentencing guidelines grant eased punishments to first-time offenders and those who say they regret their crimes.

     In contrast, other countries have much stricter punishments for industrial espionage. For example, in Taiwan, home to Samsung's chief rival in the chip industry, TSMC, people caught leaking Taiwan's core technology to foreign territories are sentenced to at least five years in jail and fined up to 100 million Taiwan dollars ($3.2 million). Meanwhile, in the United States, federal courts can impose prison terms of up to 33 years and nine months on people who leak industrial technology amounting to more than $550 million.

     The FKI has argued that amid the intensifying global competition to hold dominant positions in cutting-edge technologies, leaking industrial technologies to foreign countries should be treated as a serious crime, as it not only damages individual companies but also harms national competitiveness. In response to this, lawmakers of both the ruling and opposition parties have proposed bills recently to impose harsher punishments on people who leak industrial technology to foreign countries.

     It is clear that tougher penalties for industrial espionage are needed in order to protect Korea's trade secrets from being leaked to foreign countries. Such measures will help to ensure that companies are able to maintain their competitive edge in the global market and that the nation's competitiveness is not harmed by the theft of its industrial technologies.

Continue Reading at Source : koreatimes