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法律简讯

Partial Amendment to the Unfair Competition Prevention and Trade Secret Protection Act Strengthens Penalties for Hacking and Talent-Poaching Broker Activities

2026.09.01

A partial amendment to the Unfair Competition Prevention and Trade Secret Protection Act ("UCPA") passed the plenary session of the National Assembly on August 20, 2026. This amendment introduces crucial updates to the existing statute: it explicitly designates "hacking" as an illegal method of acquiring trade secrets and classifies so-called "broker activities"—such as introducing, arranging, or inducing trade secret infringements—as a distinct type of trade secret misappropriation subject to legal penalties.

This legislative update addresses the growing threat of trade secret theft driven by advanced information and communications technology, while bridging previous regulatory gaps regarding third-party brokers involved in such violations. The amendment is scheduled to take effect six months after its official promulgation.
 

1.

Explicit Inclusion of "Hacking" as a Method of Unfair Acquisition of Trade Secrets

Under the current UCPA, acquiring trade secrets through theft, deception, coercion, or other improper means is classified as an unfair acquisition. Consequently, obtaining trade secrets via hacking has historically relied on legal interpretation to determine whether it falls under "other improper means."

The amendment removes this ambiguity by explicitly listing "hacking" as a method of unfair acquisition (Article 2, Subparagraph 3, Item (a) of the Amendment), clearly establishing that technology-based trade secret theft is strictly regulated under the UCPA.

Furthermore, "hacking" has been explicitly added to the statutory provisions governing criminal penalties for the unfair acquisition of trade secrets (Article 18, Paragraph 1, Item 2 of the Amendment).
 

2.

New Sanctions Against Brokers Involved in Trade Secret Leakage

Industry experts have long noted a lack of direct legal mechanisms to penalize brokers who facilitate trade secret infringements, such as assisting in the movement of a company's key personnel to a competitor.

To address this, the amendment classifies the act of introducing, arranging, or inducing trade secret infringements (covering violations under Article 2, Subparagraph 3, Items (a) through (f) of the Amendment) as a statutory trade secret infringement itself (Article 2, Subparagraph 3, Item (g) of the Amendment). This allows trade secret holders to pursue civil remedies—such as claims for injunctions (Article 10) and damages (Article 11)—directly against brokers and facilitators.

Additionally, the amendment establishes independent criminal penalties for individuals or entities that introduce, arrange, or induce acts subject to criminal prosecution (Article 18, Paragraph 1, Item 4, referencing Items 1 through 3), making broker activities an independent offense.
 

3.

Refined Penalties for Using and Disclosing Unfairly Acquired Trade Secrets

Beyond the initial act of acquiring trade secrets through improper means, the amendment clarifies that using or disclosing such secrets to third parties is also punishable (Article 18, Paragraph 1, Item 2 of the Amendment). Moreover, disclosing trade secrets to a third party while knowing that a misappropriation has occurred has been added as a punishable offense (Article 18, Paragraph 1, Item 3 of the Amendment).
 

Key Takeaways for Businesses 

This amendment significantly strengthens both civil and criminal avenues for companies to combat technology theft, whether executed via hacking or facilitated by poaching brokers. When signs of trade secret leakage or improper recruitment tactics targeting key personnel are detected, organizations now have a broader, more robust framework of legal remedies at their disposal.

Conversely, routine corporate practices—such as recruiting experienced professionals or working with executive search firms—may inadvertently face scrutiny if any communications or interactions could be construed as "introducing, arranging, or inducing trade secret infringement." Consequently, businesses are advised to proactively review their lateral hiring procedures and internal trade secret compliance programs.

Kim & Chang remains committed to keeping you informed of critical legal developments and policy trends impacting your intellectual property rights. Please feel free to reach out if you have any questions or require tailored guidance regarding these upcoming changes.
 

[Korean Version]

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