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  • Act on the Promotion of Mutually Beneficial Cooperation Between Large Enterprises and Small and Medium Enterprises
    • Competent Ministry : Ministry of SMEs and Startups
    • Advance Publication of Legislation : 2021-03-31
    • Opinion Submission Deadline : 2021-04-14
Reasons for Proposal

The current Act bans commissioning enterprises from demanding technical data from commissioned enterprises as a precondition for a contract, requires the commissioning enterprise to consult with the commissioned enterprise about why technical data is requested, its rights and ownership, and what is offered in exchange and provide a written agreement to the commissioned enterprise in cases where technical data is provided due to reasonable reasons, and allows the commissioned enterprise to seek necessary action from the Fair Trade Commission.

In practice, however, the commissioning enterprise demands technical data from the commissioned enterprise during a business proposal or negotiation, and a contract is not concluded even after the commissioned enterprise provides technical data. The current legal system cannot regulate such cases.

In this regard, this Act aims to ban the provision of technical data from being demanded during a business proposal or negotiation and applies to cases where technical data is provided regardless of whether a contract is made in an effort to better protect the technology of the commissioned enterprise (Article 25 paragraph 1).


Major Provisions

Article 25

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