To protect and prevent the disclosure of industrial technology, the current Act specifies that any person causing damages to institutions possessing industrial technology by disclosing or infringing on industrial technology must compensate for such damages and such compensation shall not exceed 3 times the assessed damages when an infringement of industrial technology is deemed intentional.

Only 3 (2.9%) out of 103 cases charged by prosecutors in relation to industrial technology disclosure from 2015 to 2017 received sentences and 89% received suspended sentences (56 cases) or fines (36 cases). In the past 5 years, the police have detected more than 1,700 cases where disclosure of national industrial technologies occurred. As such, it is pointed out that the levied fine for damages needs to be raised to increase deterrence against crime.

In addition, punitive damages under the Commercial Act announced by the Ministry of Justice in December 2020 are 5 times the damages and punitive damages under the recently legislated Act on Punishment for Serious Accidents, etc. are also 5 times the damages. Even though damages for technology infringement under this Act are also punitive in nature, they are only 3 times the assessed damages.

In addition, while there is a provision that punishes any unfair disclosure of the country’s key industrial technologies to overseas to protect such technologies, the number of disclosures is on the rise in line with an increasing number of industrial espionage cases. Some claim that punishment needs to be strengthened to prevent losses for developers, businesses, and the country.

In this regard, this Act aims to increase the upper limit of damages for industrial technology infringement from 3 times to 5 times and disclosure of personal identification information for those who disclose industrial technology in an effort to protect the country’s industrial technology and minimize harm (Article 22-2 paragraph 2 and Article 36-3 newly inserted).

Articles 22-2 and 36-3