Nine out of ten South Koreans believe that the country should establish a legal framework to impose severe penalties for the overseas leakage of key technologies, such as semiconductors, from an economic security perspective.
The Korea Employers Federation (KEF) revealed this finding on July 19 from a national survey conducted with 1,000 respondents aged 19 and older regarding public awareness of measures against key technology leaks.
According to the survey, 92.5% of respondents indicated that the negative impact of key technology leaks on the economy is 'serious.'
Specifically, 62.6% rated the severity as 'very serious' (9-10 points), while 29.9% rated it as 'serious' (6-8 points), and 7.5% rated it as 'below average' (0-5 points). The average score was 8.6 out of 10.
Furthermore, 91.4% of respondents stated that South Korea should respond by establishing a legal framework for economic security similar to that of the United States and China. Only 7.8% believed the current measures were sufficient.
This suggests a demand for more effective penalties for crimes involving the overseas leakage of key technologies, in addition to the existing laws aimed at protecting and fostering technology.
Regarding the level of punishment for key technology leaks, 90.7% of respondents said that penalties should be strengthened. Only 5.3% supported maintaining the current level, while 3.2% favored a reduction.
Among those who rated the negative impact on the economy as 'very serious,' the demand for stronger penalties reached 97%. The KEF explained that the greater the perceived severity, the higher the demand for increased penalties.
Additionally, 90.6% of respondents agreed that the economic disadvantages imposed should exceed the profits gained from the crime through fines and confiscation. Only 5.0% opposed this due to concerns about excessive or double penalties, while 4.4% were unsure.
The most concerning potential damage from the overseas leakage of key technologies included 'weakened national competitiveness due to reduced technological gaps with rival countries' (53.0%), 'threats to national security and supply chain stability' (19.5%), 'decreased sales due to a drop in global market share' (16.4%), and 'job losses and tax revenue impacts due to the decline of key industries' (10.0%).
According to the KEF, the number of detected cases of overseas leakage of key technologies in South Korea surged from nine in 2021 to 33 in 2025. Since 2020, the estimated economic damage caused by these leaks has reached 23 trillion won.
Particularly in South Korea, where the proportion of advanced industries is high compared to major countries, the impact of key technology leaks on national competitiveness is significant. The Inter-American Development Bank reported that in 2024, the share of high-tech manufacturing exports in South Korea's total manufacturing exports is 36.3%, which is 1.8 times higher than the G7 average of 20.2%. This figure surpasses that of the United Kingdom (29.7%), the United States (24.3%), and France (23.1%).
The economic damage from the overseas leakage of key technologies from major companies such as Samsung Electronics, Hyundai Motor, and Hanwha Ocean amounts to tens of trillions of won. Samsung's 18-nanometer DRAM process technology, a national key technology that cost 1.6 trillion won to develop, was leaked to China's Changxin Memory in 2016, allowing China to catch up with South Korea's semiconductor technology. In the case of Hyundai Motor, key hydrogen fuel cell technology was leaked by a former employee to a Chinese automotive company, resulting in significant losses. Hanwha Ocean also suffered substantial damage when former employees leaked key submarine design plans to Taiwan.
Despite these damages, the business community points out that penalties remain weak. While countries like the United States and China have legal frameworks focused on deterring key technology leaks, South Korea's laws emphasize technology protection and development.
For instance, the U.S. Economic Espionage Act strictly punishes the leakage of technology that benefits foreign entities as economic espionage, while China's Anti-Espionage Law classifies the leakage of technologies related to national security as espionage. In fact, the U.S. has sentenced individuals to 20 years in prison for leaking aircraft engine technology, and China has imposed the death penalty in a case where an engineer sold state secrets to foreign intelligence agencies. In contrast, South Korea's Industrial Technology Protection Act focuses on industrial protection, resulting in a maximum sentence of only 6 years and 4 months for key technology leaks.
Ha Sang-woo, a director at the KEF, stated, "A majority of the public views the overseas leakage of key technologies not just as a corporate issue but as a matter that threatens national competitiveness and economic security. Given that South Korea's export-driven economy, based on advanced manufacturing, is more susceptible to the negative ripple effects of key technology leaks than other countries, there is a need for a robust legal framework for penalties as part of economic security measures."
* This article has been translated by AI.
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