Amendments to the Industrial Technology Protection Act: Expanded Coverage and Strengthened Court Order Procedures

On November 13, 2025, the National Assembly passed partial amendments to the “Act on the Prevention of Leakage and Protection of Industrial Technology” (the “Industrial Technology Protection Act” or the “Act”) during it plenary session. The amendments designate core strategic technologies in the materials, parts, and equipment sectors (“Core Strategic Technologies”) and include them within the scope of protected industrial technology under the Act and clarify the rules and procedures relating to the court order system for the submission of materials in litigation involving industrial technology infringement or leakage (the “Amendments”).

Addition of “Core Strategic Technologies” to Protected Industrial Technology

The Amendments have expanded the definition of industrial technology to include “Core Strategic Technologies,” as designated under Article 12 of the “Special Act for Strengthening Competitiveness and Stabilizing Supply Chains in the Materials, Parts, and Equipment Industry” (new Article 2(i) of the Act).

This change clearly identifies vital technologies in the materials, parts, and equipment sectors—such as semiconductors, secondary batteries, and displays—that are essential to national economic security, extending the protection of the Act to those technologies. By explicitly incorporating Core Strategic Technologies, enhanced criminal penalties and other safeguards under the Act will apply to any unauthorized use, leakage, or infringement of these technologies.

Specifically, Core Strategic Technologies have been designated across several sectors, including: semiconductors (32 items), displays (14 items), automobiles (15 items), machinery and metals (41 items), electrical and electronics (24 items), chemicals (15 items), bio (19 items), aerospace (20 items), defense (2 items), and hydrogen (18 items), in accordance with the [Appendix] to the “Notice on the Procedures for the Selection and Review of Core Strategic Technologies and Related Items”. Consequently, companies operating in these sectors are expected to more proactively assert their rights under the Industrial Technology Protection Act.

Clarification and Strengthening of the Court Order System for Submission of Materials

Under the current law (Article 22-3), courts may order the submission of materials; however, specific procedures for handling non-compliance have been lacking, which has limited the practical use of this provision. The Amendments significantly enhance these procedures to improve trial efficiency and the court’s ability to compel the submission of materials in cases of alleged industrial technology infringement or leakage.

(1)

Establishment of In Camera Review Procedure

If a holder of materials refuses submission citing legitimate grounds, the court may now order that the materials be presented confidentially for an in camera review, allowing it to assess the validity of the refusal (new Article 22-3(2) of the Act). This process enables courts to determine whether the refusal is justified while safeguarding the confidentiality of sensitive information.

(2)

Restriction on Grounds for Refusal

The Amendments make clear that refusal to submit materials is generally not permissible—even where the materials involve industrial technology or trade secrets—if they are essential to proving infringement or the calculation of damages. In such cases, the court must define the scope of disclosure or specify who may access the materials, consistent with the purpose of the submission order (new Article 22-3(3) of the Act).

(3)

Strengthening Sanctions for Non-compliance

When a party fails to comply with a court’s order to submit materials without just cause, the court may deem the opposing party’s assertions regarding those materials to be true (new Article 22-3(4) of the Act). Furthermore, if the requesting party faces significant difficultly in specifically asserting the content of the materials and proving facts by other evidence, the court may also accept as true the facts the opposing party seeks to prove through those materials (new Article 22-3(5) of the Act). These provisions substantially strengthen the enforceability and effectiveness of submission orders by clearly establishing legal sanctions for non-compliance.

Expansion of the Court’s Authority to Order Confidentiality

The Amendments expand the court’s authority to require the maintenance of confidentiality, extending protection beyond industrial technology to include trade secrets (new Articles 22-4 and 22-5 of the Act). This counter-balances the new requirement for the compulsory submission of trade secrets when necessary to prove infringement or calculate damages, and aims to prevent the unfair disclosure or misuse of trade secrets disclosed during litigation.

Following previous amendments to the Industrial Technology Protection Act that relaxed the requirements for establishing industrial technology infringement and significantly increased penalties, the latest Amendments further expand protection by explicitly adding Core Strategic Technologies to the scope of protected industrial technology and reinforcing measures for the submission and protection of sensitive information. Right holders may now benefit from a lessened evidentiary burden and more robust relief mechanisms.

Conversely, companies accused of infringement will face greater burdens when faced with infringement claims. Therefore, companies involved in industries such as semiconductors, displays, automobiles, machinery and metals, electrical and electronics, chemicals, bio, aerospace, defense, and hydrogen energy, are advised to assess the adequacy of their compliance systems and proactively monitor and update their practices.

The Amendments will take effect six (6) months following promulgation.

[Korean Version]

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