Despite the government's declaration of a hard-line stance against technology theft, small and medium-sized enterprises (SMEs) say they continue to suffer serious damage, urging institutional reform and relief for victims.
The Gyeongcheong Foundation held a press conference on Wednesday at the Korea Federation of SMEs headquarters in Yeouido, joined by independent lawmaker Kim Jong-min and Democratic Party of Korea lawmaker Song Jae-bong. "Technology theft by large corporations keeps repeating, and the types of theft and legal dispute responses are carbon copies of previous cases," the foundation said.
Representatives and officials from four companies claiming technology theft — NEC Power, CGI, Torder and CDS Global — attended the event.
Most of the companies alleging damages had been suppliers or partners of large corporations. They claimed they suffered losses after sharing technology during business cooperation or investment proposal processes. They added that disputes arose after handing over materials and know-how under the pretext of technical reviews or collaboration, only to see contracts fall apart or similar businesses launched.
CGI raised allegations of technology theft by Hanwha Solutions during a National Assembly Trade, Industry, Energy, SMEs and Startups Committee audit last year. Prior to that, in 2024, the company filed a criminal complaint against Hanwha Solutions with police over the issue.
CDS Global shared its dispute with Insanga, a bamboo salt manufacturer. CDS Global won its patent infringement case at the appellate court in 2023, but is awaiting a Supreme Court ruling after Insanga filed a further appeal.
NEC Power is in a technology dispute with SK Ecoplant over eco-friendly incinerator operation optimization solutions. Torder is locked in a dispute with KT (030200) over core technology for table-order services.
According to the Ministry of SMEs and Startups, there were 299 cases of technology infringement in 2024, with average losses of 1.82 billion won ($1.3 million) per affected company.
The National Police Agency arrested approximately 380 individuals in connection with 179 technology theft cases last year.
However, when cases go to litigation, victim companies struggle to secure evidence. The win rate in technology theft damages lawsuits stands at just 32.9%, and recognized damages amount to only 17.5% of claimed losses.
A Korea Federation of SMEs survey of 300 patent-filing SMEs from 2020 to 2023 found that one in 10 had experienced technology theft. Notably, 44% of victim companies took no action at all.
Meanwhile, the Lee Jae-myung administration has maintained a tough stance on technology theft. The Pan-Government Response Team for Eradicating SME Technology Theft launched an "SME Technology Theft Reporting Center" on June 26 at the Kensington Hotel in Yeongdeungpo-gu, Seoul.
The reporting center is a government-wide complaint and consultation center designed to facilitate prompt case filing and appropriate support for technology infringement victims.
The center operates through a five-stage system. Once a report is filed online, the Win-Win Cooperation Foundation under the Ministry of SMEs and Startups assesses the urgency and specificity of each case.
The foundation then matches the complainant one-on-one with a team of roughly 80 experts, including part-time lawyers and patent attorneys. After consulting with the complainant, the expert prepares an opinion report, and the ministry's administrative investigation team assigns the case to the relevant government agency based on that report. The ministry plans to protect complainants through to the end by linking them with victim support programs and conducting continuous monitoring.
