The Ministry of SMEs and Startups (Minister Oh Young-joo, hereinafter referred to as the Ministry of SMEs and Startups) announced the '4th SME Technology Protection Support Plan ('25-'27)', a comprehensive measure to prevent technology leaks and minimize damage from infringement by SMEs, at the SME Policy Deliberation Council on the 14th.
This plan is a statutory plan established every three years in accordance with Article 5 of the ‘Act on Support for Technology Protection for Small and Medium Enterprises.’ It is characterized by eliminating blind spots in technology protection and significantly strengthening rapid relief measures for affected companies by reflecting recent changes in the technology leak environment and demands from small and medium enterprises.
According to the '2024 Technology Protection Status Survey' conducted by the Ministry of SMEs and Startups, the number of annual technology infringements by small and medium-sized enterprises is estimated to be around 299, and the average loss per victimized company is approximately 1.82 billion won.
In particular, there are frequent cases of large companies requesting or stealing technology or ideas from small and medium-sized companies without permission during transactions or negotiations, and the number of overseas technology leaks detected in the past five years was recorded at a total of 105 cases (32 of which were national core technologies). New types of technology infringement, such as cyber hacking targeting cutting-edge industries, are also spreading rapidly.
However, the current legal remedy is criticized as being ineffective. Civil lawsuits related to technology infringement take an average of more than a year to reach a first-instance verdict, and the success rate is only 32.9%. Even if the lawsuit is won, the actual amount recognized is only 17.5% of the claimed damages, making it difficult for the victimized company to recover in reality.
There is still a gap between large and small businesses in terms of technology protection capabilities. The average technology protection capability index of small and medium-sized businesses is 49.0 points, which is about 66% of that of large businesses (74.5 points), and less than half of the companies have dedicated personnel or protection regulations.
Accordingly, the government plans to focus on three major strategies and 15 detailed tasks, including ▲eliminating blind spots in technology protection, ▲prompt relief and recovery support for affected companies, and ▲strengthening response capabilities to technology leaks, so that small and medium-sized enterprises can focus on technology development without worrying about technology infringement.
First, it provides legal protection against technological infringement during the pre-transaction and negotiation process.
First, we plan to expand the scope of application of technology protection by revising the law so that technologies that were previously protected only during transactions can now be protected during pre-transaction stages such as negotiations and consultations. Through this, startups with innovative technologies will also be able to receive legal protection even if they suffer technology leaks during negotiations with large companies.
In addition, when requesting technical data, we plan to make it mandatory to provide written information, and to legally stipulate the return or disposal of provided technical data after the end of a transaction, thereby fundamentally blocking unauthorized storage or reuse.
In addition, we plan to introduce an 'idea original certification system' to protect the ideas of startups that lack legal requirements, and clearly define new types of technology infringement, such as job transfers (brokerage activities) for the purpose of technology transfer and cyber hacking, as targets for punishment.
Second, we will provide quick relief and even compensate for development costs by improving the adjustment system.
We plan to improve the mediation system so that minor and minor technology infringement cases worth less than 50 million won can be resolved quickly through ex officio mediation procedures, and establish a ‘prosecution-police fast track’ so that reports of technology infringement received by the Ministry of SMEs and Startups are immediately transferred to the prosecution office and the national police agency so that investigations can be conducted quickly. Through this, we plan to reduce the legal response burden on the victimized companies and minimize actual damages.
In addition, by standardizing the criteria for calculating damages and establishing an improvement plan to include costs invested in technology development in the scope of compensation, we plan to increase the claim acceptance rate from the current 17.5% to 30%, thereby seeking to provide actual compensation to the affected companies.
In addition, we plan to comprehensively support companies that have suffered technology infringement so that they can return to normal operations as soon as possible by operating a step-by-step recovery support system that includes everything from damage confirmation to policy funding linkage and re-launching technology development.
Third, we provide comprehensive support, including free online legal advice and trade secret protection consulting.
We plan to expand customized consulting programs, such as free online legal advice and trade secret protection consulting, targeting small and medium-sized enterprises vulnerable to technology leaks, and continue to expand technology protection vouchers and security facility construction support projects.
In addition, in order to strengthen the technology protection capabilities of small and medium-sized enterprises advancing overseas, we plan to provide local legal advice and technology protection support through the Legal Support Team and overseas IP centers, thereby enabling a quick response to technology leaks occurring overseas.
The goal is to raise the technology protection capability index, which is currently at just 49 points, to 70 points, the level of a mid-sized company.
Minister of SMEs and Startups Oh Young-joo said, “Technology leaks are a serious threat that hinders the growth of small and medium-sized enterprises,” and added, “We will create an environment where small and medium-sized enterprises can fully focus on technology development through a comprehensive protection system ranging from preemptive prevention to response to infringements and recovery from damages.”
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