On November 4, 2025, the Korea Fair Trade Commission (“KFTC”) held a ceremony to appoint 12 industry experts as “small and medium-sized enterprises (SMEs) technology protection monitors,” and unveiled its “Measures for Eradicating Technology Theft” (the “Eradication Measures”). Through this new public-private cooperative monitoring system, the KFTC intends to proactively gather information on technology theft, rather than relying solely on complaints filed by SMEs. In addition to establishing a “tightly knit surveillance system,” the KFTC also emphasized its commitment to eradicating technology theft by “enforcing strict sanctions and implementing a comprehensive system that operates seamlessly across prevention, protection and recovery efforts.”
The Eradication Measures build on joint government strategies (titled Measures for Eradicating Theft of SME Technology) previously announced on September 10, 2025, and aim to enhance monitoring, strengthen enforcement, and provide economic and legal support to SMEs affected by technology theft. Central to the Eradication Measures is the appointment of technology theft monitors, whose on-the-ground monitoring activities are expected to strengthen the KFTC’s investigative efforts.
To mitigate the risk of enforcement, companies should strengthen their compliance systems regarding the request and use of technological information. Certain parts of the Eradication Measures will be implemented following legislative amendments, so it will also be important to closely monitor these developments.
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Establish Intensive Monitoring System for the Proactive Detection of Technology Theft
The Eradication Measures include establishing an intensive public-private monitoring network to shift away from relying on complaints from SMEs.
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Description
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Implement SME technology theft monitoring system
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Enhance communication with SMEs, including promoting anonymous reporting of technology theft
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Regular coordination meetings with related agencies
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Hold regular working-level meetings among relevant ministries, such as the Ministry of SMEs and Startups, the Korean Intellectual Property Office, and the National Police Agency, to facilitate information sharing on suspected technology theft.
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Strengthen Enforcement
The KFTC aims to address the public perception that enforcement against technology theft has been limited, including by means such as increasing the number of specialized investigators and ex officio investigations of technology theft.
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Description
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Expand ex officio investigations in high risk sectors
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Expand ex officio investigations of technology theft in key industries such as machinery, electrical/electronics, and automobile parts, from twice a year to three or more times per year.
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Increase number of specialized investigators
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Reorganize Technical Advisory Committee
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Reorganize the KFTC’s Technical Advisory Committee (which advises internally on technical aspects in technology theft cases) into smaller, industry-specific subcommittees to better meet the KFTC’s internal consultation demands (e.g., divide the Electrical/Electronic subcommittee into Semiconductor subcommittee, Electrical/Electronic subcommittee and Telecommunications subcommittee).
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Alleviate the Burden of Collecting Evidence and Burden of Proof
According to the Eradication Measures, victims of technology theft often face challenges in securing evidence and substantiating harm, making it difficult for them to receive adequate compensation. To address this, the KFTC plans to implement measures that ease the burden of evidence collection and proof in damage claims filed by SMEs in technology theft cases.
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Category
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Description
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Adopt a Korean-style discovery system
(Requires legislative amendment)
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Allow court-designated experts to directly gather evidence through means such as on-site reviews (expert fact-finding system).
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Prevent destruction of evidence through preservation orders.
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Expedite court proceedings by allowing usage of out-of-court recordings.
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KFTC’s submission of evidentiary materials to courts
(Requires legislative amendment)
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Shift burden of proof in proving damages
(Requires legislative amendment)
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In damage claims, shift the burden of proof regarding specific factual matters to the defendant (alleged infringer), such as showing differences between the technologies of the alleged infringer and victim, and independent technology development processes of the alleged infringer.
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Provide Relief to Technology Theft Victims and Enhance Their Protection Capabilities
KFTC also plans to implement preemptive and direct relief systems for companies affected by technology theft, and strengthen the protection capabilities of SMEs.
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Category
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Description
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Introduction of the right of private parties to request injunctive relief under the Subcontracting Act
(Amendment passed and scheduled to take effect on December 17, 2025)
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In cases where a subcontractor has suffered or is likely to suffer damage due to legal violations such as technology theft, the subcontractor may directly file a claim with the court to prohibit or prevent such violations, without having to first obtain a KFTC decision.
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The subcontractor may also request any necessary measures to prohibit or prevent such violations, such as the disposal of products or equipment (e.g., molds, products) manufactured through technology theft.
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Establish a relief fund for victims of unfair trade practices
(Requires amendments to the relevant laws, e.g., the Fair Trade Law, National Finance Act)
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To ensure prompt and effective relief for victims of unfair trade practices, including technology theft, establish a relief fund using fines collected by KFTC. This fund would support loans, litigation assistance, and other activities aimed at damage prevention.
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Provide support for strengthening technology protection capabilities of SMEs
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[Korean Version]
