Summary of the Revised Unfair Competition Prevention Act

(Effective from August 21, 2024)

1. Extension of Protection Scope of Data

The current Act cannot protect data managed in secret, even if it was later known to the public or the known data was collected, processed, and worked in secret.

   Even in this case, the revised Act stipulated that data was illegally acquired and used as an act of unfair competition. (Article 2, Para. 1, Item 11)

2. Punishment for Damage, Destruction, and Alteration of Trade Secrets

The current Act stipulates only the illegal acquisition, use, and leakage of trade secrets as unfair competition, and punishment for damage, destruction, and alteration of trade secrets was weak.

  However, the revised Act newly established Article 9-8 for the prohibition of damage, destruction, and alteration of trade secrets, and when it is violated, the punishment (imprisonment of up to 10 years or fines of up to 500 million won) is the same as the level of domestic leakage of trade secrets, is applied. (Article 18, Para. 3)

3. Strengthening of Punitive Compensation

The current Act stipulates compensation for damages for intentional infringement of trade secrets or exploitation of ideas up to three times the amount of damage.

However, the revised Act raised the compensation amount to five times the amount of damage. (Article 14-2, Para. 6)

4. Confiscation of Manufacturing Facilities for Infringing Trade Secrets

To prevent secondary damage caused by the distribution of infringing goods arising from unfair competition or infringement of trade secrets, the revised Act newly established confiscation regulations on manufacturing facilities that have created unfair competition or infringement of trade secrets or goods arising from such activities. (Article 18-5)

5. Strengthening of Fines on Corporations

Even if most trade secrets crimes involve corporations systematically, the current Act cannot suppress the crime of corporations due to the same level of fines between corporations and criminals.

  However, the revised Act raised the fines for corporations to be imposed up to three times that of criminals. (Article 19)

6. Extension of the Statute of Limitations on Corporations

Although corporations are involved in most acts of stealing trade secrets, the statute of limitations on corporations is shorter than that of criminals, and corporations are exempt from punishment.

However, the revised Act extended the statute of limitations for corporations up to 10 years in the same way as criminals. (Article 19-2)