What the 2026 National Audit Revealed: Around 300 Cases of Technology Theft a Year, and Remedies That Lag Behind
At the audit of the Ministry of SMEs and Startups held around October 7, lawmakers again pointed to the limits of remedies for technology theft. According to press reports, about 300 cases of technology theft against SMEs are recorded each year (299 in 2024). The average damages claim is about KRW 800 million, but courts award only about KRW 140 million on average, roughly 17.5% of the amount claimed.
The takeaway is clear. Until the system changes, the burden of proof still rests heavily on the injured SME.
Effective February 20, 2028: Three Korean-Style Evidence Tools
The amendment to the Act on the Promotion of Mutually Beneficial Cooperation between Large and Small-Medium Enterprises (the Win-Win Cooperation Act), passed by the National Assembly in January 2026, adds three evidence-gathering tools.
However, these tools cannot be used for cases that arise before the effective date. Extending them to the Patent Act and the Unfair Competition Prevention Act is still only expected. Measures to cover the "gap until 2028" raised at the audit, along with discussions of administrative fines and a victim relief fund, have not been finalized.
Know the Protections Already in Force
Each law sets a different damages multiple and covers different transaction types. Start by classifying each of your deals: is it a subcontract, a consignment arrangement, or still in pre-contract negotiation?
Five Kinds of Evidence Supplier SMEs Can Build Themselves Today
1. Technology Escrow
When you deposit technical data with the Korea Foundation for Cooperation of Large & Small Business, Rural Affairs, you are presumed to have held that technology as of the deposit date. This is strong evidence if the date of development is ever disputed. The cost is in the range of a few hundred thousand won per item per year. Check the 2026 integrated notice for the technology protection support program (KRW 13.4 billion, about 2,500 companies) for related support.
2. Pre-Deal NDAs and Written Requests
Keep a standard NDA template ready and require every request for technical data in writing. Adopt an internal rule that verbal requests are declined.
3. A Disclosure Register
Track each item you provide: list, version, date and recipient. Keep email records and drawing export logs rather than deleting them.
4. Contractual Cover at the Negotiation Stage
Amendments to protect the pre-contract stage are still under way. For now, secure confidentiality clauses by contract even during consultations and proposals.
5. Internal Security and Departing Employees
Use the security system support offered by the technology protection program. Also put in writing your procedures for returning materials, revoking accounts and signing confidentiality pledges when employees leave.
What to Do When You Suspect Infringement
Prepare the basis for calculating damages in advance: lost sales, development costs and comparable license fees. Reports say the Ministry plans to issue damages calculation guidelines by year-end, but they have not been finalized.
Review Your Technology Protection with KITIM
KITIM reviews how you share technical data with each customer, supports technology escrow and applications to the technology protection program, and checks the confidentiality clauses in your contracts. Until the new rules take effect in 2028, the evidence you build now is what fills the gap. If you want to know where your company stands, request a consultation with KITIM.