The Ministry of Trade, Industry and Energy (MOTIE) announced on September 25 that amendments to the “Act on Prevention of Divulgence and Protection of Industrial Technology” were approved at the cabinet meeting that day.

The primary purpose of the amendments is to strengthen the protection of national core technologies. The revisions now categorize individuals with dual citizenship as foreigners, expanding the scope of subjects for national core technology exports and overseas mergers and acquisitions. During the approval process of overseas M&As, considerations will now include potential effects on the national economy in addition to the current national security concerns. Moreover, for unlawful M&As, mandatory fines are to be imposed for failure to comply with orders to revert to prior conditions.

Members of the National Assembly are also proposing amendments that aim to protect industrial technology. Some of their proposals concern broadening the grounds for penalties (from purpose to intent), escalating the judicial consequences (imprisonment and fines) for technology leakage crimes, introducing measures against technology leakage brokers, unauthorized technology leakage, and usage or disclosure beyond predefined boundaries, implementing a notification system for adjudication applications and a registration system for institutions holding technologies, and strengthening surveys on the current state of affairs.

To protect the nation’s core technologies, MOTIE intends to ensure that proposals put forth by National Assembly members are discussed at the Assembly in addition to the Government's suggested revisions. The Ministry will also start preparing for revisions to the enforcement decree.