18-year imprisonment could be sentenced for national tech leaks

In a significant legal shift, the punishment for the leakage of key national technologies, including semiconductors, is expected to double, rising from the current maximum of nine years to a hefty 18 years behind bars. The revised approach recommends imprisonment even for first-time offenders. It stipulates no sentence reduction unless the leaked technology is fully returned and destroyed, including in cases where the leakage attempt was unsuccessful. This move is a direct response of the Sentencing Commission to the growing criticism of the Supreme Court's leniency in sentencing, which has traditionally been much lower than the statutory maximum.

On Friday, the Supreme Court's Sentencing Commission made an important announcement following a comprehensive meeting. The organization approved the 'Revision of the Sentencing Guidelines for Intellectual Property and Technology Infringement Crimes,' which includes a significant increase in the maximum sentence for leaking key national technologies abroad to 18 years, a category that previously lacked specific sentencing guidelines. Moreover, the Sentencing Commission amended the sentencing guidelines for industrial technology leakage crimes committed overseas, previously treated similarly to trade secret infringements with a maximum sentence of nine years, now potentially punishable by up to 15 years.

A key factor behind the ongoing incidents of smuggling core domestic technologies, including semiconductors, out of the country has been the low standard of sentencing. Despite the increased penalties set by the 2019 Industrial Technology Protection Act amendment, the court's sentencing guidelines remained unchanged, resulting in numerous cases receiving suspended sentences. However, the Sentencing Commission’s decision provides courts with clear guidelines to impose more substantial sentences on violators.

Additionally, the organization introduced new regulations to ensure first-time offenses in leaking national and industrial technologies are not considered mitigating factors and to restrict the granting of suspended sentences. Given the ease of duplicating digital blueprints and similar materials, a sentence reduction is now only possible if the attempt at leakage fails and the stolen material is returned and destroyed.

In recognition of the challenges in objectively valuing the monetary worth of leaked technology, the criteria for enhanced punishment have been broadened. Now included are cases involving infringement of patents, trade secrets, or technologies with 'significant research and development funds invested.' The definition of 'persons with a special duty of confidentiality,' such as business partners and dispatched employees, has been expanded to ensure stricter punishment in cases of technology leakage. This revised amendment is scheduled for finalization on March 25th, following public consultations and further procedural steps.


Dong-Joo Cho djc@donga.com