Updates in Korea’s Industrial Technology Protection Framework: MOTIE Announces Amendments to Enforcement Decree and Rules of ITA and Public Notice on NCT Designation

The Ministry of Trade, Industry and Energy (the “MOTIE”) has announced proposed amendments to (i) the Enforcement Decree and Enforcement Rules of the Act on Prevention of Divulgence and Protection of Industrial Technology (the “ITA,” also known as the “Industrial Technology Protection Act”), as well as to (ii) the Public Notice on the Designation of National Core Technologies (the “NCT Designation Notice”). The amendments are set forth in the following MOTIE announcements: (i) No. 2025-264 and 2025-265 dated April 1, 2025, and No. 2025-463 dated June 30, 2025, and (ii) No. 2025-356, dated May 7, 2025.

The proposed amendments to the Enforcement Decree and Enforcement Rules of the ITA are designed to strengthen the systematic management of critical technologies, including National Core Technologies (“NCTs”), by addressing gaps in the current framework and supplementing the recently amended ITA, which became effective on July 22, 2025. Specifically, the proposed amendments clarify the scenarios under which the MOTIE may, ex officio, require companies or institutions to apply for a determination on whether the technologies they hold should be classified as NCTs (i.e., the “Verification of NCT Possession”). Additionally, they specify the conditions under which entities may qualify for exemptions or simplified procedures related to the export of NCTs.

Furthermore, the MOTIE proposed revisions to the NCT Designation Notice to address technological advancements and national security concerns. These revisions will add new NCTs and update the scope of technical specifications for existing NCTs.

Below are the key highlights of the proposed amendments.

Proposed Amendments to Enforcement Decree and Enforcement Rules of ITA

The MOTIE announced that the final draft of the proposed amendments to the Enforcement Decree and Enforcement Rules of the ITA would be confirmed prior to the enforcement of the revised ITA (which took effect on July 22, 2025). The details of the amendments are as follows.

(1)

Verification of NCT Possession (Proposed Amendment to Article 13-2, Enforcement Decree)

The proposed amendments specify the scope of the Verification of NCT Possession System, under which the MOTIE may require companies or institutions that face a heightened risk of technology leakage or have significant protection needs to verify whether they possess NCTs.

The MOTIE may request companies and institutions to apply for an NCT determination in specific scenarios, including the following:

(i)	When the technology has been developed through government-funded R&D projects;

(ii)	When the technology has been recognized as an NCT through patents or publications;

(iii)

In cases of reported infringement of industrial technologies, where it is necessary to determine whether the infringed technology qualifies as an NCT; and

(iv)	When it is determined, based on information provided by the heads of relevant central administrative agencies, heads of intelligence investigative agencies or company employees, that the company may possess an NCT.

Notified companies or institutions must apply for an NCT determination within 30 days.

(2)

Exemption and Simplification of Export Approval Process (Proposed Amendment to Article 16-2, Enforcement Decree)

Further, the proposed amendments allow the MOTIE, upon determining that the risk of technology leakage is low, to exempt or simplify the review process conducted by the Industrial Technology Protection Committee and the Specialized Committees. Specific scenarios include the following: repeated exports of the same technology, exports to subsidiaries or companies overseas that have previously received the technology, joint research with foreign companies wholly owned by the holder of the NCT, and exports intended to address approvals, certifications or lawsuits involving governments or institutions overseas.

Additionally, even if detailed technical data or specific export recipients are not identified at the time of applying for export approval or submitting an export report, the MOTIE will have the authority to define the scope of the technology or potential export recipients and may grant comprehensive approval or accept the report as valid for a specified period.

(3)

Administrative Fines for Failure to Comply with Orders Pertaining to Illegal Overseas Mergers and Acquisitions (Proposed Amendment to Article 18-8, Enforcement Decree)

The ITA provides that if the risk of leakage of NCTs through overseas mergers and acquisitions (“M&As”) poses a serious threat to national security, any institution holding NCTs that proceeds with such overseas M&As without obtaining the required prior approval or without reporting to the MOTIE, or that obtains approval or acceptance of reporting through fraudulent or improper means, shall be subject to corrective measures, including orders to suspend or prohibit the transaction or to restore to its prior state.

The proposed amendments grant the MOTIE the authority to issue daily fines to companies that fail to comply with such orders, with fine amounts calculated based on the value of the merger or acquisition. Specifically, fines may reach up to KRW 8 million per day for violations of the ITA’s Article 11-2 (8), and up to KRW 10 million per day for violations of Article 11-2 (10). These fines may be increased or decreased by up to 50%, taking into account factors such as the institution’s efforts to comply with the order, the severity and justification of the non-compliance and any resulting impact.

(4)

Registration of NCT-Holding Entities (Proposed Amendment to Article 13-3 of the Enforcement Decree, Proposed Amendment to Article 1-3 through 1-6 of the Enforcement Rules)

The amended ITA requires entities identified as holders of NCTs or national high-tech strategic technologies (“NHTs”), or those that acquire substantial rights through technology transfers, to register as NCT-holding entities within 30 days of such determination.

The proposed amendments specify the requirements for registering, modifying or canceling NCT/NHT-holding entities, and provide the format for registration certificates.

Entities already verified as NCT holders must complete their registration within six months from July 22, 2025 (date on which the amended ITA took effect). Non-compliance may result in fines of up to KRW 10 million.

(5)

Technology Security Center (Proposed Amendment to Article 7-2, Enforcement Decree)

The Korea Planning & Evaluation Institute of Industrial Technology (the “KEIT”), Korea Institute of Energy Technology Evaluation and Planning (the “KETEP”) and other institutions recognized by the MOTIE as possessing expertise in technology security will be designated as “Technology Security Centers.”

These Technology Security Centers will monitor domestic and global technology trends, support the development of policies for industrial technology protection and assist the MOTIE with key tasks such as the designation, modification and revocation of NCTs. Additionally, they will also assist the Industrial Technology Protection Committee with various NCT-related responsibilities, including reviewing NCT exports, overseeing cross-border M&As involving NCTs and managing national research and development (“R&D”) projects.

(6)

Review Period for NCT Determination and Export Approval (Proposed Amendments to Article 13-2 (6), Article 15 (4), and Article 16 (4) of the Enforcement Decree)

The proposed amendments set a maximum review period of 45 days for technology reviews related to NCT determinations and export approvals. This period may be extended once by another 45 days. The purpose is to enhance predictability and reduce the overall time for technology reviews. However, as before, any time spent responding to official requests for supplementary materials will not count toward the review period.

Proposed Amendments to NCT Designation Notice

The proposed amendment to the NCT Designation Notice introduces three new technologies across three fields to the list of NCTs requiring protection. In addition, it updates the names, scope and descriptions of 15 existing technologies in six fields to better reflect technological advancements and developments in the field. As a result, the total number of NCTs will increase from 76 technologies across 13 fields to 79 technologies in 13 fields.

The key highlights are as follows.

(1)

New Designations (Proposed): Three Technologies

Three new NCTs have been designated for protection to maintain technological superiority, enhance the economic and environmental competiveness of technologies, reduce dependence on overseas sources and safeguard national defense. The additions consist of one technology each in the fields of (i) electrical and electronics, (ii) metals, and (iii) aerospace, respectively.

Field	NCT Designation (Proposed)
Electrical and Electronics (1)	Design, processing, and manufacturing technology for ultra high-capacity density MLCCs exceeding 21μF/mm³
Metals (1)	Low-temperature, low-pressure hematite processing technology for zinc smelting
Aerospace (1)	Payload manufacturing and signal processing technology for SAR resolution of 1m or less

(2)

Revised Designation (Proposed): 15 Technologies

The proposed amendments revise the scope and terminology of fifteen technologies currently designated as NCTs across six fields – (i) semiconductors, (ii) automotive and railways, (iii) metals, (iv) shipbuilding, (v) information and communication, and (vi) robotics. These revisions are designed to address recent technological advancements and standardize terminology in accordance with prevailing industry practices.

Field	Current NCT Designation	Amended NCT Designation (Proposed)
Semiconductors (1)	Design technology for LTE/LTE_adv/5G baseband modems	Design technology for LTE/LTE_adv/5G/5G_adv baseband modems
Automotive and Railway (1)	Design and manufacturing technologies for core components and systems for autonomous vehicles (limited to camera systems, radar systems, lidar systems and high-precision positioning systems within three years of commercialization)	Design and manufacturing technologies for core components and systems for autonomous vehicles (limited to cameras, radar, lidar and high-precision positioning modules and control systems within three years of commercialization)
Metals (4)	Manufacturing technology of iron bar/section steel with yield strength 700 MPa or higher and tensile strength of 650 MPa or higher (limited to products manufactured through electrical furnace method with low-carbon steel (0.4% C or less))	Manufacturing technology of iron bar/section steel with yield strength 700 MPa or higher and tensile strength of 650 MPa or higher (limited to products manufactured through electrical furnace method with low-carbon steel (0.4 wt.% C or less))
	Manufacturing technology for alloy steel containing manganese for high-processing (more than 10% manganese)	Manufacturing technology for specialty steel containing high manganese (more than 10 wt.% manganese)
	Manufacturing technology for giga-level high strength steel board containing 4% or less alloy element	Manufacturing technology for giga-level high strength steel board containing 4 wt. % or less alloy element
	Manufacturing technology for low-nickel (3% or less Ni) and high-nitrogen (0.4% or more N) stainless steel	Manufacturing technology for low-nickel (3 wt.% or less Ni) and high-nitrogen (0.4 wt.% or more N) stainless steel
Shipbuilding (3)	Design technology for high-value-added ships (super-large capacity container ships, low temperature liquid tank ships, anti-freezing freight ships, eco-friendly fuel-powered ships, electric propulsion ships, etc.) and ocean systems (marine platform vessels, maritime structure, maritime plant, etc.)	Design technology for high-value-added ships (super-large capacity container ships, low temperature liquid tank ships, anti-freezing freight ships, eco-friendly fuel-powered ships, electric propulsion ships, WIG ships, etc.) and ocean systems (marine platform vessels, maritime structure, maritime plant, etc.)
	Manufacturing technology for ship core machinery materials (BWMS manufacturing technology, WHRS manufacturing technology, manufacturing technology for machine and materials for reducing emission of atmospheric pollution sources such as SCR and EGCS)	Manufacturing technology for ship core machinery materials (BWMS manufacturing technology, WHRS manufacturing technology, manufacturing technology for machine and materials for reducing emission of atmospheric pollution sources such as SCR, EGCS and OCCUS, etc.)
	Design, process and manufacturing technologies for fuel supply device, cargo operation system, reliquefaction and re-gasification device, etc., for ships that transport or are propelled by green fuel (low or zero-carbon fuel)	Design and manufacturing technologies for fuel supply device, cargo-BOG operation systems for eco-friendly (low or zero-carbon fuel) transport and propulsion ship
Information and Communication (4)	Design technology of PA for downsizing base stations and minimizing electric power usage	Design technology for power amplifiers applicable to wireless devices
	Design technology for LTE/LTE_adv/5G measuring devices	Design technology for LTE/LTE_adv/5G/5G_adv measuring devices
	Core optical communication technology for enabling the Software-Defined Networking (“SDN”)	Core optical communication technology for enabling next-generation packet optical transport networks
	Design technology for 5G system (beamforming/MIMO and mobile telecommunications network)	Design technology for 5G and 5G_adv system (beamforming/MIMO and mobile telecommunications network)
Robotics (2)	Software technologies for operation of multi-manufacturing robots where work spaces are shared	Software technologies for operating multiple robots in manufacturing and logistics environments
Robotics (2)	Integrated control technology for multi-mobile robots based on video surveillance	Integrated control technology for mobile surveillance and reconnaissance robots

The proposed amendments to the Enforcement Decree and Enforcement Rules of the ITA provide clarification on the conditions under which the MOTIE may, ex officio, require companies and institutions to apply for verification of their NCT-holding status. They also establish the criteria for calculating administrative fines imposed on entities that fail to comply with the MOTIE’s corrective orders concerning illegal overseas mergers and acquisitions involving NCTs. Additionally, the revised NCT Designation Notice updates the scope of existing NCTs and designates new ones. Therefore, companies that currently hold or suspect that they may hold NCTs should closely review the changes.

Notably, if an entity receives a notice for NCT determination, it must submit the application within 30 days. Therefore, companies potentially holding NCTs are advised to proactively check whether they fall within the scope of the new verification system.

Furthermore, the proposed amendments introduce measures to alleviate procedural burdens associated with exporting NCTs. These include exemptions and simplifications in export approval processes, acceptance of reports concerning NCT exports and comprehensive export authorizations. Companies planning to export that qualify for these streamlined procedures – such as repeat exports of previously approved technologies – are encouraged to utilize the simplified processes. As the proposed amendments delegate authority to the MOTIE to establish detailed implementation criteria and procedures, the MOTIE’s updated notifications, operational guidelines and related developments should be followed closely.

[Korean Version]

Share

Professionals

Professionals