In response to escalating global competition for cutting-edge technologies, South Korea is ramping up efforts to safeguard its intellectual property and business secrets from overseas leaks. The country’s finance minister, Choi Sang-mok, announced on Thursday that the government would introduce stronger preventive measures to bolster the global competitiveness of its industries, particularly in sectors identified as critical to South Korea’s economic future.
“We will prevent illegal leaks of advanced technologies to raise the global competitiveness of our companies and strengthen technology leadership,” Choi stated during a press briefing.
With the rising prominence of advanced technologies like semiconductors and artificial intelligence, South Korea has been forced to confront the risks associated with the theft of intellectual property and industrial espionage. As global supply chains become more fragmented, safeguarding proprietary information is seen as critical to maintaining the country’s position as a global technology powerhouse.
In recent years, South Korea has faced increasing incidents of attempted technology leaks, particularly in high-value industries such as semiconductors. According to the National Intelligence Service (NIS), there have been 97 reported attempts to leak business secrets to foreign entities over the past five years. Of these, 40 were related to the semiconductor industry, a sector vital to South Korea’s economy.
The NIS estimates that if these attempts had been successful, the resulting damage could have totaled nearly 23 trillion won (approximately $16.85 billion). The financial stakes are enormous, and as South Korean companies continue to lead in fields like semiconductor technology, rechargeable batteries, and artificial intelligence, the potential for foreign competitors to seek unauthorized access to proprietary information remains a pressing concern.
Minister Choi emphasized the importance of preventing such losses, pointing out that illegal technology leaks not only undermine the global competitiveness of South Korean firms but also threaten national security.
To combat the rising threat of intellectual property theft, the South Korean government plans to implement a “big data” system at the national patent office. This system aims to strengthen the country’s ability to track and prevent technology leaks before they occur. The exact workings of the system remain unclear, but it is expected to monitor patent filings and industrial processes for suspicious activities, as well as track patterns that may indicate a risk of information theft.
Additionally, Choi announced that new regulations would be introduced to impose harsher penalties on those found guilty of leaking trade secrets abroad. Although the specifics of these penalties have not yet been outlined, the intention is to send a clear message that intellectual property theft will be met with severe legal consequences.
“We need to take decisive action to ensure that attempts to steal our nation’s vital technologies are met with the full force of the law,” Choi said. “Strengthening punishment is a necessary deterrent in a world where the stakes are only getting higher.”
South Korea’s focus on preventing leaks is part of a broader strategy to protect its “national strategic technologies” – a designation given to 12 key industries that are crucial for the country’s economic and technological leadership. These industries include semiconductors, rechargeable batteries, aerospace, artificial intelligence (AI), and others that are central to the global tech race.
The semiconductor industry, in particular, is one of South Korea’s crown jewels, with companies like Samsung Electronics and SK Hynix playing pivotal roles in global supply chains. In fact, South Korea accounts for over 70% of global memory chip production, making it an indispensable player in the global tech landscape.
Semiconductors are used in everything from smartphones to electric vehicles to advanced military equipment, and their importance to national security has never been greater. The global shortage of chips that began in 2020 has only underscored the strategic importance of maintaining control over semiconductor production and protecting the technologies that make it possible.
This intense focus on semiconductors also stems from recent incidents of attempted intellectual property theft. Last month, a South Korean executive accused of stealing semiconductor information developed by Samsung Electronics was detained again, facing new allegations of theft related to chip processing technology. Such incidents have highlighted the need for stronger protections and a more aggressive approach to stopping intellectual property theft before it reaches international competitors.
The broader context for South Korea’s move to tighten protections around its strategic technologies is the growing fragmentation of global supply chains. As countries around the world attempt to reduce their dependence on foreign suppliers, particularly in key industries like semiconductors and renewable energy, competition for cutting-edge technologies has intensified.
Countries such as the United States, China, and Japan have all launched significant initiatives to boost their domestic capabilities in these areas, with the United States passing the CHIPS Act to support semiconductor production, and China investing heavily in developing its own chipmaking technology. In this competitive environment, South Korea’s ability to maintain its technological edge is increasingly seen as a matter of national security, as well as economic prosperity.
To address these challenges, South Korea has designated its 12 “national strategic technologies” for targeted government support, including financial incentives, research funding, and stronger legal protections. This move aims to insulate the country’s most critical industries from both external competition and the risks of technological theft.
While South Korea is working to strengthen its domestic protections, it is also seeking to collaborate with international partners to safeguard its technologies. In recent years, the country has participated in various multilateral efforts to establish standards for intellectual property protection, particularly in industries that are prone to espionage and theft.
At the same time, South Korea has increasingly turned to export controls to prevent the outflow of sensitive technologies to countries that could use them for competitive purposes or military advantage. These export controls are designed to prevent the sale or transfer of critical technologies, such as advanced semiconductor manufacturing equipment, to foreign companies or governments that may use them to erode South Korea’s technological edge.
The delicate balance between maintaining international trade partnerships and protecting proprietary technologies is a constant challenge for South Korea, particularly as global trade becomes more intertwined with issues of national security. Minister Choi has signaled that the government is prepared to tighten export controls if necessary, to ensure that South Korean technologies do not fall into the wrong hands.
The government’s announcement of stronger measures to prevent technology leaks has been largely welcomed by the South Korean business community, particularly in sectors like semiconductors and rechargeable batteries. Executives at major firms, including Samsung and LG, have long called for stronger protections for their intellectual property, citing the significant investments they have made in research and development.
At the same time, some in the business community have expressed concern that overly stringent regulations could stifle innovation or make it more difficult for companies to collaborate with foreign partners. South Korea’s economy is highly export-oriented, and maintaining access to global markets is critical for the success of its high-tech industries. As such, the government will need to strike a careful balance between protecting domestic technologies and supporting international trade.
In a statement following Minister Choi’s announcement, the Korea Semiconductor Industry Association (KSIA) expressed support for the government’s efforts but urged caution in implementing new regulations. “We believe that protecting our intellectual property is of paramount importance,” the KSIA said. “However, we also need to ensure that these measures do not hinder our ability to engage in global research collaborations or enter new markets.”
As South Korea moves forward with its plan to bolster protections against overseas technology leaks, the government is also keen to maintain its focus on fostering innovation. The country’s national strategic technologies are not only key to its economic future but also to its ability to lead in fields like artificial intelligence, green energy, and next-generation telecommunications.
To this end, the government has pledged continued financial support for research and development in these critical industries, with the goal of ensuring that South Korea remains at the forefront of global innovation. Minister Choi emphasized that protecting these technologies from theft is only one part of a broader strategy to enhance the country’s global standing in high-tech industries.
“We must ensure that South Korea continues to lead in the development of advanced technologies, not only by protecting our intellectual property but also by investing in the future of innovation,” Choi said.
As global competition for advanced technologies intensifies, South Korea is stepping up its efforts to prevent the illegal outflow of business secrets and proprietary information. The introduction of a big data system, coupled with stronger penalties for those caught leaking trade secrets, reflects the government’s commitment to protecting its national strategic technologies.
However, the challenges posed by a fragmented global supply chain and the need for international collaboration mean that South Korea must navigate a complex landscape. By balancing protection with innovation, the country aims to solidify its position as a global leader in high-tech industries, while safeguarding its economic and national security interests.
