A Maximum Sentence of 18 Years in Prison If Stolen Abroad of National Core Technology

                                                            Myung Shin Kim, Advisor

                                                       The Korean Patent Attorneys Association

On March 26, 2024, the Supreme Court Sentencing Committee (the Sentencing Committee) unveiled the new Sentencing Standards, a significant development that underscores the gravity of the issue. These standards stipulate that if national core technologies such as semiconductors, displays, automobiles, etc., are illicitly transported abroad, the court could impose a sentence of up to 18 years in prison, in accordance with the Act on the Prevention and Protection of Industrial Technology Leakage.   

According to these Sentencing Standards, technology infringement crimes, previously classified as intellectual property crimes, have been independent. The conventional sentencing standards could only be sentenced to up to 9 years in prison for infringement of trade secrets for domestic and foreign technology leakages.

However, the Sentencing Committee announced that it had set a range of sentences higher than the sentencing standards for similar criminal groups, reflecting the public consensus on strict sentencing for technology infringement crimes, and under the new Standards, it can be sentenced to up to 18 years for infringement of overseas leakage of national core technologies such as semiconductors, displays, and automobiles, up to 15 years for infringement of overseas leakage of industrial technologies other than national core technologies, up to 9 years for infringement of industrial technologies in Korea.

On the other hand, the unique factor for the crime of technology leakage included 'cases that caused serious damage to the victim,' which included infringement of patent rights, trade secrets, technology, etc., in which a considerable amount of R&D expenses were invested. In addition, 'the case where the accused is a person who has an obligation to keep trade secrets or industrial technology as confidential depending on the contractual relationship, etc. was newly included in the scope of a person with a special obligation to maintain confidentiality.' Particular mitigation factors for technology leakage crimes included 'when trade secrets were recovered without being leaked outside' 'and they state that to be recognized, leaked information must be returned, discarded, and there is little room for illegal use.'

These Sentencing Standards are a guideline that judges refer to when making decisions. These new standards apply to cases prosecuted on or after July 1, 2024.