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National Assembly Legislation

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  • Unfair Competition Prevention and Trade Secret Protection Act
    • Competent Ministry : Korean Intellectual Property Office
    • Advance Publication of Legislation : 2021-01-29
    • Opinion Submission Deadline : 2021-02-12
Reasons for Proposal

The importance of data, the foundation of the digital age such as the 4th Industrial Revolution and artificial intelligence, is increasing day by day, and economic added values are being created by using big data. However, sanctions against actions that unfairly gain profits by acquiring data by fraudulent means or damage data holders are insufficient. 

The Supreme Court has ruled the act of collecting data, without permission, disclosed by another person for business purposes and trading them with a third party or using them for commercial purposes as “unfair competition” based on the supplementary general provision (Article 2, Subparagraph 1 (k)) of this Act. However, the provision has limitations in properly restricting various types of unauthorized collection, use, and distribution of data that may occur in the future. 

Therefore, this amendment aims to establish a sound data market order by clearly stipulating “fraudulent data use” in the Act and restricting it as unfair competition (Article 2, Subparagraphs 5 and 6 newly inserted).


Major Provisions

Articles 5, 6, and 7

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