IP Newsletter | Spring/Summer 2017
National Core Technology List Updated
The Ministry of Industry, Trade and Energy ("MOTIE") issued a notification on November 28, 2016 publishing an updated list of the "National Core Technologies" (Notification No. 2016-211). Currently, two Korean statutes govern the outflow/export of technology: (i) the Foreign Trade Law ("FTL") and (ii) the Act on Prevention of Leakage and Protection of Industrial Technology ("ITA"). While the FTL regulates "Strategic Technology" controlled under multinational strategic materials export control regimes, such as the Wassenaar Arrangement, the Nuclear Suppliers Group, etc., the ITA regulates National Core Technology ("NCT"), that is industrial technology which, if leaked, may have a detrimental effect on the national security and development of the national economy due to their substantial economic value. MOTIE is the primary government agency responsible for administering these two laws.
Under the ITA, an exporter of an NCT is required to (i) obtain approval of the export from MOTIE if the technology was a result of R&D supported by government funding or (ii) declare the export to MOTIE if the technology was a result of R&D without government funding. If an NCT subject to export approval/declaration is improperly exported (e.g., without required approval; via incorrect procedures; without export declaration; using a false declaration, etc.), MOTIE may suspend or prohibit the export or order "restoration to the original state" (e.g., revoking export contract). Violators of the ITA will be subject to criminal prosecution. The maximum penalty is up to 15 years in prison or up to KRW 1.5 billion (approximately USD 1,350,000) fines under the June 30, 2016 amendment to the ITA.
The ITA also regulates a foreign investor's acquisition of, or merger with, a Korean company possessing NCT that is developed through R&D funded by the Korean government's subsidies. If a foreign investor (including a Korean company owned and controlled by a foreign investor) acquires 50% or more of the shares of a Korean company (the "Target Company") (or, if acquiring less than 50%, if the acquiring company will become the largest shareholder having substantial control over the management of the Target Company), and the Target Company owns an NCT that is developed through R&D funded by the Korean government's subsidies, the Target Company must report such acquisition to MOTIE prior to the closing of such transaction – the transaction may not be finalized until MOTIE issues its approval.
The NCT list is regularly updated and includes the following amendments. A new section for machine and robot technology was added having nine (9) sub-technologies. Moreover, one (1) automobile, two (2) nuclear power, one (1) information and communication, two (2) space sub-technologies were added to the list. Further, some of the existing sub-technology items were updated. We recommend reviewing your technologies in view of the amended NCT list below to ensure compliance with the export control law.
List of National Core Technologies (Updated as of November 28, 2016)
Field National Core Technology
Electrical and Electronics (11) Design, process and device technology & 3D stacking technology for 30nm or less DRAM
Assembly and inspection technology for 30nm or less DRAM
Design, process and device technology & 3D stacking technology for 30nm or less NAND flash
Assembly and inspection technology for 30nm or less NAND flash
Design, process, manufacturing (excluding module assembly process technology) and driving technology for 8G (2200x2500mm) or higher generation TFT-LCD panel
Process and device technology & 3D stacking technology for 30nm or less foundry
Design, process and manufacturing technology (excluding module assembly process technology) for AMOLED panel
Design technology, process technology and manufacturing technology for medium & large-size, high-energy density (in case of pouch type 200Wh/kg or more; in case of angular type, 85% of the pouch type) and high-temp stable (50°C or higher) lithium secondary battery for electric automobile, etc.
Design and process technology for mobile application processor SoC
Design technology for LTE/LTE_adv baseband modems
Modem design technology for WiBro terminal baseband modems
Automobile·Railway (8) Design and manufacturing technology for gasoline direct injection (GDI) type fuel injection systems
Design and manufacturing technology for hybrid and electric power based vehicle (xEV) systems (limited to control unit, battery management system, and regenerative braking system)
Design and manufacturing technology for fuel cell vehicle stack system, hydrogen storage and supply system
Design and manufacturing technology for liquid phase LPG injection (LPLi) system of LPG vehicle
Design and manufacturing technology for diesel engine fuel injection apparatus, super charger system and exhaust gas post-treatment apparatus of EURO 6 emission standards or higher (limited to DPF, SCR)
Design and manufacturing technology for automobile engines and automatic transmissions (limited to technologies within 2 years after mass production)
Design and manufacturing technology for integrated railway vehicle body using composite materials
Design and manufacturing technology for power system of high-speed train having speed of 350km/h or higher (limited to AC induction motor, TDCS control and diagnosis, and main power converting device technology)
Steel (6) FINEX fluidized furnace operation technology
Manufacturing technology of iron bar/section steel with yield strength 600MPa or higher (limited to product manufactured by electrical furnace with low-carbon steel (0.4% C or less))
Manufacturing technology for TWIP steel containing manganese for high-processing (more than 10% manganese)
Manufacturing technology for giga-level high strength steel board containing 4% or less alloy element
Manufacturing technology for 100 tons or higher (for single product) large-sized cast and forged-steel product for shipbuilding and power plant
Manufacturing technology for low-nickel (3% or less Ni) and high-nitrogen (0.4% or more N) stainless steel
Shipbuilding (7) Design technology for high-value-added ships (super-large capacity container ship, low temperature liquid tank ship, large capacity cruise ship, anti-freezing freight ship, etc.) and ocean systems (maritime structure, maritime plant, etc.)
Manufacturing technology for LNG ship cargo tanks
Block erection and overland ship building technology for 3,000 tons or more ships
Manufacturing technology for 500 or higher horsepower diesel engines, crankshafts and propeller with 5 meter or more diameter
Technology of combined control system and automated navigation for ship
ERP/PLM system, and CAD-based design and production support program for shipbuilding
Manufacturing technology for ship core machinery materials (BWMS manufacturing technology, WHRS manufacturing technology, fuel supply device manufacturing technology for ship with gas fuel projection and re-liquefaction & re-gasification device manufacturing technology)
Nuclear Power (5) Technology for passive auxiliary feed water system of nuclear power plant
Technology for remote visual inspection of the secondary side of nuclear power plant steam generator
Development technology for neutron mirror and neutron guide tube
Manufacturing technology of U-Mo alloy nuclear fuel for research-purpose atomic reactor
Technology of nuclear reactor output control system for advanced light-water reactor
Information & Communication Technology (8) Interwork design technology for binary CDMA baseband modem and security algorithm for near field communication
Intelligent customized learning management and operation technology
Light weight PKI implementation technology (limited to set-top boxes including DTV and IPTV, mobile terminals and ubiquitous terminals)
Non-stop detection and avoid (DAA) technology for avoiding signal interference in UWB system
Design technology for LTE/LTE_adv system
Technology for smart device user interface (UI)
Design technology of PA for downsizing base stations and minimizing electric power usage
Design technology for LTE/LTE_adv/WiBro/WiBro_adv measuring devices
Space Technology (4) High-performance cryogenic turbo pump technology
Technology of cryogenic/high pressure diaphragm actuated opening/closing valve
Algorithm technology for high-speed activation posture control of satellite cameras with resolution of 1 meter or less
Solid-state diffusion-bonding component forming technology
Biotechnology (3) Large scale fermentation and purification technology for antibody (animal cell expression and purification technology for 50,000 liter or more scale)
Production technology for botulinum toxin formulations (including botulinum toxin strain)
Manufacturing technology for scanning probe microscopy (true non-contact mode technology, dual servo type XY scanner technology, and 30nm or less semiconductor device cross-section shape 3D imaging technology)
Machine·Robot (9) Design and manufacturing technology for multi-axis turning centers having capability of turning, milling, precision composite processes
Design and manufacturing technology for high-precision 5-axis machining centers
Reliability engineering and manufacturing technology for medium & large-sized excavators
Design technology for off-road diesel engine and post-processing system of Tier 4F emission standards
Design and manufacturing technology for load-sensing hydraulic type transmission for tractors
Technology of high-efficiency turbo compressor working with low global warming potential (GWP) refrigerants
Design and manufacturing technology for laparoscope and image guided surgical robot system
Design and production technology of robots for high-density procedure operation
Robot guard system based on video surveillance technology
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Seok Hee LEE
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