Stricter legal measures needed to curb surging ultra-super technology theft
Posted January. 10, 2024 07:57,
Updated January. 10, 2024 07:57
Stricter legal measures needed to curb surging ultra-super technology theft.
January. 10, 2024 07:57.
.
There was a record high of 13 reported attempts to steal Korea's semiconductor technology last year. This surge highlights a growing trend of efforts to steal the nation's critical high-industrial technology, accounting for roughly 20% of its exports. Many of these incidents involve individuals employed by companies in Korea who illicitly acquire the technology and subsequently pass it on to employers in China and other regions. Many argue for more stringent penalties for these industrial spies, likening their actions to acts of treason.
The outflow of semiconductor technology, which used to be reported once per year on average, escalated to an average of three to six cases yearly between 2019 and 2021, spiked to nine cases in 2022, and reached a staggering 13 cases last year. Incidents of theft concerning semiconductor-related technology constituted 38 out of the total 96 crackdown cases over the past six years. Other industrial sectors, including displays, automobiles, and secondary cells, are also experiencing a rise in such cases. Notable instances pose a significant national security threat, such as when a former middle manager of Samsung Electronics sold 18-nano D-RAM processing information upon joining a Chinese company. Additionally, a former employee of Daewoo Shipbuilding and Marine Engineering (now Hanhwa Ocean) sold the entire design of Korea's domestically produced submarine to a Taiwanese competitor.
The existing regulations for protecting industrial technology stipulate that individuals leaking industrial technology abroad may face sentences of 15 years or less or fines of up to 1.5 billion won. Those found responsible for leaking the nation's core technology may receive sentences of three years or more, coupled with fines of up to 1.5 billion won. However, the historical record of sentence durations determined by the Supreme Court reveals considerably lighter penalties, ranging from one to six years in prison, with many resulting in a stay of execution. Such lenient punishments appear inadequate for these grave offenses, which cause extensive and profound damage.
Thus, the National Assembly is currently deliberating on revising the law concerning industrial technology protection. Proposed amendments involve raising fines to a maximum of 6.5 billion won and increasing the compensation limit from the current three times the damages to five times. However, after intense debate, the proposal to impose a seven-year jail term, treating offenders as industrial spies guilty of treason, did not gain approval. Additionally, the ruling and opposition parties are still in disagreement over whether to grant immunity to informants, crucial figures in exposing such theft, further complicating the passage of the amended bill.
Several of Korea's pivotal industrial sectors, including display technology, which played a crucial role in driving the national economy, have experienced a significant decline in their ultra-superior capabilities and technological dominance due to the migration of core technologies and talents to China. The recent theft and leakage of these essential technologies resulted in damages soaring to several trillion won per case. While numerous advanced economies, including the U.S., are fortifying legal and institutional barriers to curb technological leakage, the delayed responses from the justice and legislature departments are leaving Korean firms with their hands tied, unable to protect the cutting-edge technologies they developed through substantial investments.
한국어
There was a record high of 13 reported attempts to steal Korea's semiconductor technology last year. This surge highlights a growing trend of efforts to steal the nation's critical high-industrial technology, accounting for roughly 20% of its exports. Many of these incidents involve individuals employed by companies in Korea who illicitly acquire the technology and subsequently pass it on to employers in China and other regions. Many argue for more stringent penalties for these industrial spies, likening their actions to acts of treason.
The outflow of semiconductor technology, which used to be reported once per year on average, escalated to an average of three to six cases yearly between 2019 and 2021, spiked to nine cases in 2022, and reached a staggering 13 cases last year. Incidents of theft concerning semiconductor-related technology constituted 38 out of the total 96 crackdown cases over the past six years. Other industrial sectors, including displays, automobiles, and secondary cells, are also experiencing a rise in such cases. Notable instances pose a significant national security threat, such as when a former middle manager of Samsung Electronics sold 18-nano D-RAM processing information upon joining a Chinese company. Additionally, a former employee of Daewoo Shipbuilding and Marine Engineering (now Hanhwa Ocean) sold the entire design of Korea's domestically produced submarine to a Taiwanese competitor.
The existing regulations for protecting industrial technology stipulate that individuals leaking industrial technology abroad may face sentences of 15 years or less or fines of up to 1.5 billion won. Those found responsible for leaking the nation's core technology may receive sentences of three years or more, coupled with fines of up to 1.5 billion won. However, the historical record of sentence durations determined by the Supreme Court reveals considerably lighter penalties, ranging from one to six years in prison, with many resulting in a stay of execution. Such lenient punishments appear inadequate for these grave offenses, which cause extensive and profound damage.
Thus, the National Assembly is currently deliberating on revising the law concerning industrial technology protection. Proposed amendments involve raising fines to a maximum of 6.5 billion won and increasing the compensation limit from the current three times the damages to five times. However, after intense debate, the proposal to impose a seven-year jail term, treating offenders as industrial spies guilty of treason, did not gain approval. Additionally, the ruling and opposition parties are still in disagreement over whether to grant immunity to informants, crucial figures in exposing such theft, further complicating the passage of the amended bill.
Several of Korea's pivotal industrial sectors, including display technology, which played a crucial role in driving the national economy, have experienced a significant decline in their ultra-superior capabilities and technological dominance due to the migration of core technologies and talents to China. The recent theft and leakage of these essential technologies resulted in damages soaring to several trillion won per case. While numerous advanced economies, including the U.S., are fortifying legal and institutional barriers to curb technological leakage, the delayed responses from the justice and legislature departments are leaving Korean firms with their hands tied, unable to protect the cutting-edge technologies they developed through substantial investments.
Most Viewed