Act On Prevention Of Divulgence And Protection Of Industrial Technology


Published: 2011-07-25

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CHAPTER I GENERAL PROVISIONS
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 Article 1 (Purpose)   print
The purpose of this Act is to prevent undue divulgence of industrial technology and protect industrial technology in order to strengthen the competitiveness of Korean industries and contribute to national security and development of the national economy.
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 Article 2 (Definitions)   print
The terms used in this Act shall be defined as follows: <Amended by Act No. 10962, Jul. 25, 2011>
1. The term "industrial technology" means technology that falls under any of the following items which the heads of relevant central governmental administrative organs determine, publish, announce or authenticate in accordance with the order (limited to Presidential Decree, Ordinance of the Prime Minister and Ministerial ordinance; hereafter the same shall apply in this Article) delegated by an Act or the relevant Act to enhance the competitiveness of industries under their jurisdiction among the methods and technological information necessary for the development, production, dissemination and use of products or services:
(a) State-of-the-art technology under Article 5 of the Industrial Development Act;
(f) New technology under Article 7 (1) of the Environmental Technology and Industry Support Act;
(g) Technology determined, published, announced or authenticated in accordance with the order delegated by other Act or the relevant Act.
2. The term "national core technology" means industrial technology designated under Article 9, which has high technological and economic values in the Korean and overseas markets or brings high growth potential to its related industries and is feared as a technology to exert an significantly adverse effect on the national security and the development of the national economy in the event that it is divulged abroad;
3. The term "national research and development project" means research and development projects advanced by the heads of relevant central governmental administrative agencies under Article 11 of the Framework Act on Science and Technology.
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 Article 3 (Responsibility and Duty of State, etc.)   print
(1) The State shall formulate and implement comprehensive policies needed prevent the divulgence of, and to protect industrial technology.
(2) In the application of this Act, every institution involved in the development, dissemination and utilization of industrial technology, such as the State, enterprises, research institutes and universities shall make efforts to protect workers, such as researchers and developers of industrial technology from being treated unfairly and becoming a bona fide victim, and not to retrain the dissemination and utilization of industrial technology and knowledge.
(3) Every citizen shall endeavor to pay more attention to and elevate awareness to prevent the divulgence of industrial technology and to cultivate the awareness of vocational ethics.
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 Article 4 (Relations with Other Acts)   print
Except as provided otherwise in other Acts, matters concerning the prevention of divulgence and protection of industrial technology shall be governed by the provisions of this Act.
CHAPTER II FORMATION AND ENFORCEMENT OF POLICIES TO PREVENT DIVULGENCE OF AND PROTECT INADUSTRIAL TECHNOLOGY
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 Article 5 (Formulation and Implementation of Comprehensive Plans)   print
(1) The Minister of Knowledge Economy shall formulate and implement comprehensive plans to prevent the divulgence of, and protect industrial technology (hereinafter referred to as "comprehensive plan"). <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10962, Jul. 25, 2011>
(2) The Minister of Knowledge Economy shall, when formulating comprehensive plans, undergo the deliberation of the Industrial Technology Protection Committee under Article 7 after consulting with the heads of relevant central governmental administrative agencies in advance. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10962, Jul. 25, 2011>
(3) Comprehensive plans shall contain each of the following matters: <Amended by Act No. 10962, Jul. 25, 2011>
1. Basic goals and directions for prevention of divulgence and protection of industrial technology;
2. Phased goals and measures to prevent the divulgence of, and protect industrial technology;
3. Matters concerning publicity and education on preventing divulgence of, and protecting industrial technology;
4. Matters concerning the establishment of infrastructure to prevent divulgence of, and protect industrial technology;
5. Matters concerning research and development of technology to prevent divulgence of, and protect industrial technology;
6. Matters concerning the collection, analysis, processing and dissemination of data on the prevention of divulgence and protection of industrial technology;
7. Matters concerning international cooperation to prevent divulgence of, and protect industrial technology;
8. Other matters necessary to prevent divulgence of, and protect industrial technology.
(4) The Minister of Knowledge Economy may require the submission of data necessary to formulate comprehensive plans from the heads of relevant central governmental administrative agencies and the heads of enterprises, research institutes, specialized institutions, universities, etc. which possess industrial technology (hereinafter referred to as "institution possessing industrial technology"). In such cases, the head of an agency who is requested to submit data shall comply with such request, unless any extenuating circumstances exist. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10962, Jul. 25, 2011>
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 Article 6 (Formulation and Implementation of Action Plans)   print
(1) The heads of relevant central governmental administrative agencies shall, in accordance with comprehensive plans, formulate and implement action plans to prevent the divulgence of, and protect industrial technology (hereinafter referred to as "action plan") each year. <Amended by Act No. 10962, Jul. 25, 2011>
(2) Matters necessary for the formulation and implementation of action plans shall be determined by Presidential Decree.
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 Article 7 (Establishment, etc. of Industrial Technology Protection Committee)   print
(1) The Industrial Technology Protection Committee (hereinafter referred to as the "Committee") shall be established under the Prime Minister's Office to deliberate on matters in each of the following subparagraphs which concern preventing divulgence of industrial technology and protecting industrial technology: <Amended by Act No. 10962, Jul. 25, 2011>
1. Matters concerning the formulation and implementation of comprehensive plans;
2. Matters concerning the designation, change and cancellation of national core technology under Article 9;
3. Matters concerning the export, etc. of national core technology under Article 11;
4. Matters concerning overseas acquisition, merger, etc. of an institution possessing industrial technology which possesses national core technology under Article 11-2;
5. Other matters determined by Presidential Decree as necessary to prevent the divulgence of, and protect industrial technology.
(2) The Committee shall be comprised of not more than 25 members, including one chairperson. In such cases, at least five persons falling under paragraph (3) 3 shall be included in the members.
(3) The Prime Minister shall become a chairperson and persons in each of the following subparagraphs shall become members: <Amended by Act No. 8852, Feb. 29, 2008>
1. A person who is the head of a relevant central governmental administrative agency and determined by Presidential Decree;
2. A person who is the head of an information and investigation agency in charge of preventing the divulgence of industrial technology;
3. A person who is experienced and knowledgable in preventing the divulgence of industrial technology, and protecting industrial technology and commissioned by the chairperson.
(4) The Committee shall have one secretary member, who shall be the Minister of Knowledge Economy. <Amended by Act No. 8852, Feb. 29, 2008>
(5) The Committee shall establish working committees to deliberate on matters in each of the following subparagraphs which concern preventing divulgence of industrial technology, and protecting industrial technology, and the working committees shall establish specialized committees by area thereunder to support deliberation, etc. of items: <Amended by Act No. 10962, Jul. 25, 2011>
1. An advance review on items under deliberation of the Committee;
2. Matters delegated by the Committee, as prescribed by Presidential Decree;
3. Other practical matters necessary for preventing divulgence of industrial technology, and protecting industrial technology, as prescribed by Presidential Decree.
(6) Other matters necessary for the organization, operation, etc. of the Committee, working committees and specialized committees by area shall be determined by Presidential Decree.
CHAPTER III PREVENTING DIVULGENCE AND MANAGEMENT OF INDUSTRIAL TECHNOLOGY
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 Article 8 (Formulation, etc. of Guidelines for Protection)   print
(1) The Minister of Knowledge Economy shall formulate guidelines (hereinafter referred to as "guidelines for protection") for methods, procedures, etc. needed to prevent the divulgence of industrial technology and protect industrial technology upon consultation with the heads of relevant central governmental administrative organs, and shall enable institutions possessing industrial technology to utilize the guidelines for protection. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10962, Jul. 25, 2011>
(2) The Minister of Knowledge Economy may, upon consultation with the heads of relevant central governmental administrative agencies, revise or supplement the guidelines for protection through the deliberation by the Committee, taking into account the trend in the development of industrial technology, Korean and overseas market environments, etc. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10962, Jul. 25, 2011>
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 Article 9 (Designation, Change, Cancellation, etc. of National Core Technology)   print
(1) The Minister of Knowledge Economy may designate national core technology through the deliberation by the Committee, receiving from the head of a relevant central governmental administrative agency notice of technology to be designated as national core technology under the jurisdiction of the head of the relevant central governmental administrative agency (hereafter referred to as "technology subject to designation" in this Article). <Amended by Act No. 8852, Feb. 29, 2008>
(2) The head of a relevant central governmental administrative agency shall select technology subject to designation within the minimum scope necessary, taking into account the ripple effect of the technology in question on national security and the national economy, market share of relevant products in the Korean and overseas markets, harmony between trends in research in the areas concerned and the spread of technology, etc. in a comprehensive manner.
(3) Where the Minister of Knowledge Economy receives from the head of a relevant central governmental administrative agency a request to change the scope or substance of national core technology under the jurisdiction of the head of the relevant central governmental administrative agency or to cancel the designation thereof, he/she may make the change or cancellation thereof through the deliberation by the Committee. <Amended by Act No. 8852, Feb. 29, 2008>
(4) Where the Minister of Knowledge Economy designates national core technology pursuant to paragraph (1) or changes the scope or substance of national core technology or cancels designation pursuant to paragraph (3), he/she may make public notice thereof. <Amended by Act No. 8852, Feb. 29, 2008>
(5) Where the Committee deliberates on the designation, change or cancellation of national core technology pursuant to paragraphs (1) and (3), it shall, upon receipt of a request by interested persons such as an enterprise in possession of or managing technology subject to designation, provide an opportunity to state opinions to such persons, as prescribed by Presidential Decree.
(6) The institution possessing industrial technology may request the Minister of Knowledge Economy to determine whether the technology which the relevant institution possesses is applicable to the national core technology, as prescribed by Presidential Decree. <Newly Inserted by Act No. 10962, Jul. 25, 2011>
(7) The criteria and procedure for the designation, change and cancellation of national core technology under paragraphs (1) and (3) and other necessary matters shall be determined by Presidential Decree. <Amended by Act No. 10962, Jul. 25, 2011>
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 Article 10 (Measure for Protection of National Core Technology)   print
(1) The head of institutions possessing industrial technology which possesses and manages national core technology shall take measures necessary to establish infrastructure to prevent the divulgence of national core technology such as designation of protection zones, approval of admission, or inspection of personal belongings at the time of entry.
(2) Necessary matters concerning the measures under paragraph (1) shall be determined by Presidential Decree.
(3) No person shall be allowed to refuse, interfere with or challenge the measures for protection under paragraph (1) without any justifiable ground. <Newly Inserted by Act No. 9368, Jan. 30, 2009>
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 Article 11 (Export, etc. of National Core Technology)   print
(1) Where an institution possessing industrial technology which holds national core technology developed with government subsidies for research and development intends to export the national core technology concerned to a foreign enterprise, etc. by means of sale, transfer, etc. (hereinafter referred to as "export of national core technology"), it shall obtain approval from the Minister of Knowledge Economy. <Amended by Act No. 8852, Feb. 29, 2008>
(2) With respect to an application for approval under paragraph (1), the Minister of Knowledge Economy may, after consulting with the head of the relevant central governmental administrative agency concerned, grant approval through the deliberation of the Committee, taking into account the ripple effect of the export of national core technology on national security, the national economy, etc. <Amended by Act No. 8852, Feb. 29, 2008>
(3) Where national core technology approved pursuant to paragraph (1) is technology under Article 19 (1) of the Foreign Trade Act, it shall be deemed to have obtained permission pursuant to paragraph (2) of the same Article, and being defense science and technology and defense articles under Articles 30 and 34 of the Defense Acquisition Program Act, it shall be deemed to have obtained permission under Article 57 (2) of the same Act. In such cases, the Minister of Knowledge Economy shall consult with the head of the relevant central governmental administrative agency in advance. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10962, Jul. 25, 2011>
(4) Where an institution possessing industrial technology which possesses and manages national core technology, other than that approved pursuant to paragraph (1), intends to export the national core technology, it shall report it to the Minister of Knowledge Economy in advance. <Amended by Act No. 8852, Feb. 29, 2008>
(5) When the Minister of Knowledge Economy deems that the export of national core technology subject to reporting under paragraph (4) may seriously affect national security, he/she may, after consulting with the head of the relevant central governmental administrative agency, order institutions possessing industrial technology to take measures such as suspension or prohibition of export of such national core technology, restoration to original state, etc. through the deliberation of the Committee. <Amended by Act No. 8852, Feb. 29, 2008>
(6) Any person that intends to export national core technology subject to reporting under paragraph (4) may file an application for prior review with the Minister of Knowledge Economy as to whether the national core technology in question is related to national security. <Amended by Act No. 8852, Feb. 29, 2008>
(7) Where an institution possessing industrial technology which possesses national core technology exports national core technology without obtaining approval under paragraph (1) or obtaining approval by unjust means, or exports national core technology subject to reporting under paragraph (4) without making a report, or by making a false report, the Minister of Knowledge Economy may, after reporting to the Committee the result of the investigation he/she has requested to the head of an information and investigation agency, order institutions possessing industrial technology to take measures, such as suspension and prohibition of export of the national core technology in question, restoration to original state, etc. through the deliberation by the Committee. <Amended by Act No. 8852, Feb. 29, 2008>
(8) In any of the following cases, the Committee may listen to the opinions of institutions possessing industrial technology:
1. Deliberation on applications for approval under paragraph (2);
2. Deliberation on suspension and prohibition of export of national core technology which seriously affects the national security, restoration to original state, etc. under paragraph (5);
3. Deliberation on suspension and prohibition of export of national core technology, and restoration to original state with respect to non-approval or false approval, non-reporting or false reporting, etc. under paragraph (7).
(9) The Minister of Knowledge Economy may allow the specialized committees to review matters in connection with approval under paragraph (1) or reporting under paragraph (4) and request the heads of relevant central governmental administrative agencies or the heads of institutions possessing industrial technology to render necessary cooperation, such as submission of data. In such cases, the heads of the relevant central governmental administrative agencies and the heads of institutions possessing industrial technology shall render cooperation, unless any extenuating circumstances exist. <Amended by Act No. 8852, Feb. 29, 2008>
(10) Detailed matters concerning approval under paragraph (1), reporting under paragraph (4), measures and procedures for suspension and prohibition of export, restoration to original state, etc. under paragraphs (5) and (7), etc. shall be determined by Presidential Decree.
(11) Matters necessary for application for prior review as to whether national core technology is related to the national security under paragraph (6) shall be determined by Presidential Decree.
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 Article 11-2 (Overseas Acquisition, Merger, etc. of Institutions Possessing Industrial Technology which Possess National Core Technology)   print
(1) Where an institution possessing industrial technology which holds national core technology developed with government subsidies for research and development intends to proceed foreign investment (hereinafter referred to as "overseas acquisition, merger, joint venture, etc.") of "overseas acquisition, merger, joint venture, etc." which is determined by Presidential Decree, it shall report in advance to the Minister of Knowledge Economy.
(2) Where an institution possessing industrial technology under paragraph (1) has noticed that overseas acquisition, merger, etc. is proceeding by foreigners determined by Presidential Decree, it shall immediately report such fact to the Minister of Knowledge Economy.
(3) Where the Minister of Knowledge Economy deems that the divulgence of national core technology under paragraphs (1) and (2) may seriously affect national security, he/she may, after consulting with the head of the relevant central governmental administrative agency, order institutions possessing industrial technology to take measures, such as suspension, prohibition, restoration to original state, etc. with respect to overseas acquisition, merger, etc. through the deliberation by the Committee.
(4) When a person who intends to proceed overseas acquisition, merger, etc. under paragraphs (1) and (2) has a question about matters of the following subparagraphs with respect to appropriate overseas acquisition, merger, etc., he/she may request to the Minister of Knowledge Economy to examine in advance, as prescribed by Presidential Decree:
1. Whether the national core technology in question is related to national security;
2. Whether the overseas acquisition, merger, etc. in question is subject to the reporting of paragraphs (1) and (2);
3. Other questionable matters with regard to relevant overseas acquisition, merger, etc.
(5) Where an institution possessing industrial technology which holds national core technology fails to file a report under paragraphs (1) and (2), submits a false or unlawful means of report, and proceed overseas acquisition, merger, etc., the Minister of Knowledge Economy may request an examination to the head of the intelligence and investigation agency, after reporting the outcome of examination to the Committee, order the institution possessing industrial technology to take necessary measures, such as suspension, prohibition, restoration to original state, etc. with respect to overseas acquisition, merger, etc. through the deliberation by the Committee.
(6) In any of the following cases, the Committee may listen to the opinions of an institution possessing industrial technology:
1. Deliberation on the reporting under paragraphs (1) and (2);
2. Deliberation on suspension, prohibition, restoration to original state, etc. with respect to overseas acquisition, merger, etc. which seriously affect national security pursuant to paragraph (3);
3. Deliberation on damage of an institution possessing industrial technology according to measures of paragraph (3);
4. Deliberation on suspension, prohibition, restoration to original state, etc. of overseas acquisition, merger, etc. with respect to failing to report or false report under paragraph (5).
(7) The Minister of Knowledge Economy may require specialized committees by area to examine with regard to the reporting pursuant to paragraphs (1) and (2), request necessary cooperation of materials submitted, etc. to the head of a relevant central administrative agency or the head of an institution possessing industrial technology. In such cases, the head of a relative central administrative agency or the head of an institution possessing industrial technology shall cooperate therewith, unless any extenuating circumstances exist.
(8) Detailed matters on measures, procedures, etc. of the reporting under paragraphs (1) and (2), and suspension, prohibition, restoration to original state, etc. shall be prescribed by Presidential Decree.
[This Article Newly Inserted by Act No. 10962, Jul. 25, 2011]
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 Article 12 (Protection and Management of National Research and Development Projects)   print
The heads of institutions possessing industrial technology shall devise and implement necessary measures in order to prevent development outcomes from being divulged externally in the course of conducting industrial technology-related national research and development projects.
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 Article 13 (Advice for Rectification)   print
(1) If deemed necessary in connection with measures to protect the national core technology under Article 10 and protection and management of national research and development projects under Article 12, the Minister of Knowledge Economy may advise the heads of institutions possessing industrial technology to rectify matters. <Amended by Act No. 10962, Jul. 25, 2011>
(2) The heads of institutions possessing industrial technology advised to rectify matters pursuant to paragraph (1) shall devise and implement measures for correction and notify the Minister of Knowledge Economy the result thereof. <Amended by Act No. 10962, Jul. 25, 2011>
(3) In the case of the advice for rectification to the heads of institutions possessing industrial technology under paragraph (1), the Minister of Knowledge Economy shall report the major contents and reasons of the advice for rectification in question, the result of measures, etc. to the Committee. <Newly Inserted by Act No. 10962, Jul. 25, 2011>
(4) Matters necessary for the advice for rectification under paragraphs (1) and (2), the devise and implementation of measures for rectification, and for reporting to the Committee under paragraph (3) shall be determined by Presidential Decree. <Amended by Act No. 10962, Jul. 25, 2011>
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 Article 14 (Prohibition of Divulging and Infringing Industrial Technology)   print
No person shall be allowed to engage in any of the following activities: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10962, Jul. 25, 2011>
1. Acquiring the industrial technology of institutions possessing industrial technology by means of theft, deception, threat and other unjust methods or by using or publicizing such industrial technology (including providing information to a specific person in secret; hereinafter the same shall apply);
2. Persons who have a duty to maintain confidentiality for industrial technology under Article 34 or in accordance with a contract, etc. with the institution possessing industrial technology divulge industrial technology for the purpose of obtaining an unlawful benefit or causing damage to an institution possessing industrial technology or use or publicize or cause a third person to use such industrial technology;
3. Acquiring, using or publicizing industrial technology, knowing the fact that any activity under subparagraph 1 or 2 is involved in the industrial technology, or using or publicizing industrial technology, knowing, after the acquisition of the industrial technology, the fact that any activity under subparagraph 1 or 2 is involved in the industrial technology;
4. Acquiring, using or publicizing industrial technology without knowing, by gross negligence, the fact that any activity under subparagraph 1 or 2 is involved in the industrial technology or using or publicizing industrial technology without knowing, by gross negligence after the acquisition of the industrial technology, the fact that any activity under subparagraph 1 or 2 is involved in the industrial technology;
5. Exporting national core technology without obtaining approval under Article 11 (1) or obtaining approval by unjust means;
6. Overseas acquiring, merging, etc. industrial technology, failing to report under Article 11-2 (1) and (2) or reporting by other unjust means for the purpose of using national core technology or being used of it overseas;
7. Failing to perform orders issued by the Minister of Knowledge Economy under Articles 11 (5) and (7) and 11-2 (3) and (5).
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 Article 14-2 (Right to Request Prohibition, etc. on Act of Infringement of Industrial Technology)   print
(1) If a person who acts or intends to act infringement on industrial technology causes infringement on the profit of business or causes concern about infringement on the profit of business, an institution possessing industrial technology may request the prohibition of his/her act or prevention thereof.
(2) When an institution possessing industrial technology files a request under paragraph (1), it may request measures necessary for the destruction of articles which causes act of infringement, the removal of facilities which is provided for act of infringement, and other prohibition or prevention of act of infringement.
(3) If an institution possessing industrial technology fails to exercise the right for three years from the date when it learns the fact that the profit of business is infringed or is feared to be infringed, the actor of infringement, the right to request prohibition or prevention on act of infringement of industrial technology under paragraph (1) shall be terminated upon completion of prescription, where the act of infringement on industrial technology keeps going. When it has passed ten years from the date the act of infringement began, the same shall also apply.
[This Article Newly Inserted by Act No. 10962, Jul. 25, 2011]
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 Article 15 (Report, etc. on Infringement of Industrial Technology)   print
(1) The heads of institutions possessing industrial technology which possess national core technology, and industrial technology developed through a national research and development project shall, when an activity under any of the subparagraphs of Article 14 is likely to, or does, occur, report such fact to the Minister of Knowledge Economy and the head of an information and investigation agency immediately and may request them to take necessary measures. <Amended by Act No. 8852, Feb. 29, 2008>
(2) Upon receipt of a request under paragraph (1) or recognition of the prohibited act under Article 14, the Minister of Knowledge Economy and the head of an information and investigation agency shall take necessary measures as requested. <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10962, Jul. 25, 2011>
CHAPTER IV ESTABLISHMENT OF INFRASTRUCTURE FOR PROTECTION OF INDUSTRIAL TECHNOLOGY AND DEVELOPMENT AND SUPPORT OF INDUSTRIAL SECURITY TECHNOLOGY, ETC.
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 Article 16 (Establishment, etc. of Association for Industrial Technology Security)   print
(1) Institutions possessing industrial technology may establish an Association for Industrial Technology Security (hereinafter referred to as the "Association"), obtaining authorization from the Minister of Knowledge Economy to efficiently promote policies to prevent divulgence of, and protect industrial technology. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The Association shall be a corporation, and it shall be established by completing registration of establishment at the seat of its principal office.
(3) Matters requiring registration, other than the registration of establishment, shall not prevail against a third person, unless relevant registration is made.
(4) The Association shall conduct the following affairs: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10962, Jul. 25, 2011>
1. Formulation of and cooperation on policies for protection of industrial technology;
2. Dissemination of information on divulgence of industrial technology to foreign countries;
3. Counselling, public relations, education and investigation of actual conditions to prevent the divulgence of industrial technology;
4. Collection, analysis and publication of data on protection of industrial technology, inside and outside Korea;
5. Duties of support to the protection of industrial technology under Article 22 (1);
6. Assistance in the affairs of the Industrial Technology Dispute Conciliation Committee under Article 23;
7. Others affairs, such as projects that the Minister of Knowledge Economy deems it necessary to entrust and projects determined by the Association's articles of association.
(5) If necessary to protect industrial technology of institutions possessing industrial technology, the government may provide funds necessary to carry out business of the Association within budgetary limits.
(6) Matters necessary for business, supervision, etc. of the Association shall be determined by Presidential Decree.
(7) Except as otherwise provided for in this Act, the provisions of the Civil Act concerning incorporated associations shall apply mutatis mutandis to the Association.
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 Article 17 (Investigation of Actual Conditions for Protection of Industrial Technology)   print
(1) The Minister of Knowledge Economy may, when necessary, investigate actual conditions of protection and management of industrial technology of institutions possessing industrial technology. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The Minister of Knowledge Economy may, in order to investigate actual conditions pursuant to paragraph (1), request institutions possessing industrial technology and relevant organizations to submit relevant material or render cooperation needed to carry out the duty of investigation. In such cases, any person that receives such request shall comply therewith, unless there exists any special circumstance. <Amended by Act No. 8522, Feb. 29, 2008>
(3) Necessary matters concerning the subjects, scope, method, etc. of the investigation of actual conditions under paragraph (2) shall be determined by Presidential Decree.
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 Article 18 (International Cooperation)   print
(1) The government may advance international cooperation business necessary for international exchange of relevant industrial security technology and professional manpower, international standardization of industrial security technology, international joint research and development of industrial security technology, etc. in order to facilitate international cooperation to protect the industrial technology.
(2) The government may assist in each of the following business:
1. Examination and research of industrial security technology and security industries at an international level;
2. Exchange of manpower and information on industrial security technology and security industries at an international level;
3. Holding international exhibitions, academic meetings, etc. on industrial security technology and security industries;
4. Others such as projects determined by Presidential Decree, as deemed necessary to devise and implement measures at an international level.
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 Article 19 (Education on Protection of Industrial Technology)   print
(1) The Minister of Knowledge Economy may provide education to officers and employees of institutions possessing industrial technology to prevent the divulgence of, and protect the industrial technology. <Amended by Act No. 8852, Feb. 29, 2008>
(2) Necessary matters concerning contents, term, cycle, etc. of the education under paragraph (1) shall be determined by Presidential Decree.
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 Article 20 (Support for Development of Industrial Security Technology, etc.)   print
(1) The government may devise and implement policies to develop the industrial security technology and foster professional manpower in order to protect industrial technology.
(2) The government may cause institutions possessing industrial technology to work to develop the industrial security technology under paragraph (1), etc. in order to efficiently promote the development of technology needed to protect the industrial technology.
(3) With respect to those who conduct an industrial security technology developing business, etc. pursuant to paragraph (2), the government may contribute money or subsidize expenses needed to conduct business.
(4) Necessary matters concerning payment, use, management, etc. of the contributions under paragraph (3) shall be determined by Presidential Decree.
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 Article 21 (Industrial Technology Protection Reward, Protection, etc.)   print
(1) The government may, within budgetary limits, reward those who contributed significantly to preventing divulgence of and protecting industrial technology through developing industrial security technology, etc. or those who reported the divulgence of industrial technology to foreign countries in contravention of this Act. <Amended by Act No. 9368, Jan. 30, 2009>
(2) The government shall, when requested by a person who reported the fact of divulging industrial technology to foreign countries in violation of the provisions of this Act, take necessary measures, such as protecting such person.
(3) With respect to foreigners who contributed significantly to preventing divulgence of, and protecting industrial technology through developing industrial security technology, etc., the government may assist their settlement in Korea and acquisition of Korean nationality.
(4) Necessary matters concerning criteria, method and procedure for reward, payment of reward, protection of people, etc. under paragraphs (1) through (3) shall be determined by Presidential Decree.
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 Article 22 (Support to Protection of Industrial Technology)   print
(1) If deemed necessary to promote the protection of technical technology, the government may support the the following to institutions possessing industrial technology, etc.: <Newly Inserted by Act No. 10962, Jul. 25, 2011>
1. Consultation on the protection of industrial technology;
2. Technical support to install and operate security facilities of industrial technology;
3. Support to education and manpower training for the protection of industrial technology;
4. Other matters necessary for the protection of industrial technology.
(2) Matters necessary for support under paragraph (1) shall be determined by Presidential Decree.
CHAPTER V SUPPLEMENTARY PROVISIONS
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 Article 23 (Industrial Technology Dispute Conciliation Committee)   print
(1) The Industrial Technology Dispute Conciliation Committee (hereinafter referred to as the "Conciliation Committee") shall be established under the Minister of Knowledge Economy to conciliate disputes over the divulgence of industrial technology promptly. <Amended by Act No. 8852, Feb. 29, 2008>
(2) The Conciliation Committee shall consist of not more than 15 members including one chairperson.
(3) The Minister of Knowledge Economy shall appoint or commission members of the Conciliation Committee as prescribed by Presidential Decree from among persons who fall under any of the following subparagraphs: <Amended by Act No. 8852, Feb. 29, 2008>
1. Persons who are working or have worked for a university or certified research institute as an associate professor or in a higher position or in a position equivalent thereto and majored in an area related to protection of technology or information;
2. Persons who are or have been a public official of grade Ⅳ or above or are working or have worked for a public institution in a position equivalent thereto and have experiences in the affairs of prevention of divulgence of industrial technology;
3. Persons who are officers of an enterprise conducting a business to protect industrial technology or of an organization conducting a duty to protect industrial technology;
4. Persons who are qualified as judge, prosecutor or attorney-at-law.
(4) The term of membership shall be three years and may be extended.
(5) The chairperson shall be appointed by the Minister of Knowledge Economy from among the members. <Amended by Act No. 8852, Feb. 29, 2008>
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 Article 24 (Conciliation Department)   print
(1) The Conciliation Committee shall establish a conciliation department, comprised of not more than five members, to efficiently arbitrate disputes, and one of whom shall be a person qualified as attorney-at-law.
(2) The Conciliation Committee may, if necessary, entrust some of disputes to the conciliation department under paragraph (1) for conciliation.
(3) Necessary matters concerning the structure and operation of the conciliation department under paragraph (1) shall be determined by Presidential Decree.
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 Article 25 (Exclusion, Challenge and Avoidance of Members)   print
(1) Every member falling under any of the following subparagraphs shall be excluded from deliberation and resolution on the relevant case for dispute conciliation claim concerned (hereinafter referred to as "case"):
1. Where the member, his spouse or former spouse is a party to the case concerned or is a joint interest holder or obligor in the case concerned;
2. Where the member is in or has been in a kinship relationship with a party to the case concerned;
3. Where the member has given testimony or has made an appraisal in connection with the case concerned;
4. Where the member is or has been involved in the case concerned as an attorney, officer or employee of a party to the case concerned.
(2) Every party may, when he/she is under a circumstance due to which it is difficult to expect a fair deliberation and resolution of members, submit an application for challenge to the Conciliation Committee. In which cases, the Conciliation Committee shall, when it deems such application for challenge reasonable, render a decision of challenge.
(3) Every member may, when he has a ground which falls under paragraph (1) or (2), voluntarily avoid deliberation and resolution on the case concerned.
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 Article 26 (Conciliation of Disputes)   print
(1) Any person that desires the conciliation of a dispute related to the divulgence of industrial technology may apply for conciliation of such dispute by submitting a written application for conciliation to the Conciliation Committee, stating the purpose of and ground for the application therein.
(2) The Conciliation Committee shall, when receiving an application for dispute conciliation under paragraph (1), examine the application and prepare a conciliation proposal within three months from the date on which it receives the application: in cases where an unavoidable circumstance exists, such period may be extended within the scope of one month by the resolution of the Conciliation Committee.
(3) In cases where the period under paragraph (2) elapses, conciliation shall be deemed not have taken place.
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 Article 27 (Requests for Materials, etc.)   print
(1) The Conciliation Committee may request materials necessary for dispute conciliation from the parties to the dispute. In such cases, the parties to the dispute shall comply with such request, unless any special circumstance exists.
(2) The Conciliation Committee may, when deemed necessary, have the parties to a dispute or witnesses appear at the Conciliation Committee to listen to their opinions.
(3) When the Conciliation Committee requests materials pursuant to paragraph (1) and listens to the statement of opinions pursuant to paragraph (2), it shall not make such materials and statement of opinions available to the public and shall maintain the confidentiality for materials submitted and opinions heard.
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 Article 28 (Effect of Conciliation)   print
(1) The Conciliation Committee shall, when it completes preparation of a conciliation proposal pursuant to Article 26 (2), present it to each party to the dispute without delay.
(2) Any party to a dispute that is presented with a conciliation proposal pursuant to paragraph (1) shall notify the Conciliation Committee of his/her acceptance or non-acceptance of the conciliation proposal within 15 days from the date on which he/she is presented with the conciliation proposal.
(3) The Conciliation Committee shall, when a party to a dispute accepts a conciliation proposal, promptly prepare a conciliation protocol, to which the chairperson and each party shall put their names and affix their seals.
(4) In cases where a party to a dispute accepts a conciliation proposal and writes his/her name and affixes his/her seal thereto pursuant to paragraph (3), the conciliation proposal concerned shall have the same effect as that of compromise in a trial.
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 Article 29 (Refusal and Suspension of Conciliation)   print
(1) When the Conciliation Committee deems a dispute inappropriate to be conciliated by the Conciliation Committee due to its nature or when a party to a dispute is deemed to have filed an application for conciliation for an undue purpose, it may refuse to perform the conciliation concerned. In such cases, it shall notify the applicant of the ground thereof, etc.
(2) The Conciliation Committee shall, when one party institutes a litigation to a court while it proceeds to handle a conciliation case applied for, suspend the proceeding of such conciliation and notify the parties concerned of such fact.
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 Article 30 (Conciliation Procedure, etc.)   print
Necessary matters concerning the method and procedure for conciliation of disputes, handling of conciliation affairs, etc. shall be determined by Presidential Decree.
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 Article 31 (Acts Applicable Mutatis Mutandis)   print
Except as otherwise provided for in this Act, the provisions of the Judicial Conciliation of Civil Disputes Act shall apply mutatis mutandis to the conciliation of disputes over the divulgence of industrial technology, unless it is against the nature of the Judicial Conciliation of Civil Disputes Act.
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 Article 32 (Fees)   print
(1) Any person that applies to the Conciliation Committee for the conciliation of a dispute over the divulgence of industrial technology shall pay a fee as prescribed by Presidential Decree.
(2) Necessary matters concerning the amount, method of and procedure for collection of fees under paragraph (1) shall be determined by Ordinance of the Ministry of Knowledge Economy. <Amended by Act No. 8852, Feb. 29, 2008>
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 Article 33 (Delegation and Entrustment of Authority)   print
The Minister of Knowledge Economy may delegate or entrust some of his/her authority under this Act to the heads of auxiliary organs or the heads of organs under his control or the heads of relevant central governmental administrative organs or the heads of relevant specialized institutions as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008>
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 Article 34 (Obligation to Maintain Confidentiality)   print
No person who falls or has fallen under any of the following subparagraphs shall divulge or make fraudulent use of secrets he/she has learned while conducting his/her duties: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10962, Jul. 25, 2011>
1. Any officer or employee of an institution possessing industrial technology (including professors, researchers and students);
2. Any person who designates, changes and cancels designation of national core technology pursuant to Article 9;
3. Any person who performs review, prior review or investigation for matters on export, acquisition, merger, etc. of national core technology, etc. pursuant to Articles 11 and 11-2;
4. Any person who receives reports on and prevents infringement pursuant to Article 15;
5. Any person who is engaged in counselling or investigation of actual conditions pursuant to Article 16 (4) 3;
6. Any person who investigates actual conditions of protection and management of industrial technology pursuant to Article 17 (1);
7. Any person who conducts research and development of industrial security technology as an employee of an industrial security technology development business operator pursuant to Article 20 (2);
8. Any person who conciliates disputes over industrial technology pursuant to Article 23;
9. Any person who conducts business, exercising some of the authority delegated or entrusted by the Minister of Knowledge Economy pursuant to Article 33.
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 Article 35 (Deemed Public Officials in Application of Penal Provisions)   print
Any person who conducts any of the following duties shall be deemed a public official in the application of Articles 129 through 132 of the Criminal Act: <Amended by Act No. 8852, Feb. 29, 2008; Act No. 10962, Jul. 25, 2011>
1. Any person who designates, changes and cancels designation of national core technology pursuant to Article 9;
2. Any person who reviews or investigates matters on export, acquisition, merger, etc. of national core technology, etc. pursuant to Articles 11 and 11-2;
3. Any person who receives reports on and prevents infringement pursuant to Article 15;
4. Any person who investigates actual conditions of protection and management of industrial technology pursuant to Article 17;
5. Any person who conciliates disputes over industrial technology pursuant to Article 23;
6. Any person who conducts businesses, exercising part of the authority delegated or entrusted by the Minister of Knowledge Economy pursuant to Article 33.
CHAPTER VI PENAL PROVISIONS
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 Article 36 (Penal Provisions)   print
(1) Any person who commits an offence falling under any subparagraph (excluding subparagraph 4) of Article 14 to use industrial technology or have industrial technology used in a foreign country shall be punished by imprisonment with prison labor for not more than ten years or by a fine not exceeding one billion won. <Amended by Act No. 8900, Mar. 14, 2008>
(2) Any person who commits an offence falling under any subparagraph (excluding subparagraphs 4 and 6) of Article 14 shall be punished by imprisonment with prison labor for not more than five years or by a fine not exceeding 500 million won. <Amended by Act No. 10962, Jul. 25, 2011>
(3) Any person who commits an offence falling under subparagraph 4 of Article 14 shall be punished by imprisonment with prison labor for not more than three years or by a fine not exceeding 300 million won.
(4) Property acquired by a person who has committed an offence falling under paragraphs (1) through (3) through such offence shall be confiscated: Provided, That where such property cannot be confiscated wholly or partially, the value equivalent thereto shall be collected.
(5) Any person who divulges a secret in violation of Article 34 shall be punished by imprisonment for not more than five years or suspension of qualification for not more than ten years or by a fine not exceeding 50 million won.
(6) Any person who has attempted a crime under paragraphs (1) and (2) shall be punished.
(7) Sentences to imprisonment with prison labor and sentences to a fine under paragraphs (1) through (3) shall not be imposed concurrently.
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 Article 37 (Preparation, Plotting, etc.)   print
(1) Any person that prepares to or plots to commit crime under Article 36 (1) with intention to consummate the same shall be punished by imprisonment with prison labor for not more than three years or by a fine not exceeding 30 million won.
(2) Any person who prepares to or plots to commit crime under Article 36 (2) with the intention to consummate the same shall be punished by imprisonment with prison labor for not more than two years or by a fine not exceeding 20 million won.
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 Article 38 (Joint Penal Provisions)   print
When the representative of a corporation, or the proxy, employee or other worker of a corporation or an individual commits an offence falling under any of Article 36 (1) through (3) in connection with business of the corporation or the individual, not only is the offender punished but the corporation or the individual shall also be punished by a fine as prescribed in the corresponding provision: the same shall not apply to cases where such corporation or individual paid considerable attention to and diligently supervised the business concerned to prevent the occurrence of such offence.
[This Article Wholly Amended by Act No. 9227, Dec. 26, 2008]
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 Article 39 (Fines for Negligence)   print
(1) Any person that falls under any of the following subparagraphs shall be punished by fines for negligence not exceeding ten million won: <Amended by Act No. 9368, Jan. 30, 2009>
1. Any person who refuses, interferes with or challenge measure to protect national core technology in violation of Article 10 (3);
2. Any person who fails to make a report on the infringement of industrial technology under Article 15 (1);
3. Any person who fails to submit relevant materials or has submitted false materials in violation of Article 17 (2).
(2) Fines for negligence under paragraph (1) shall be imposed and collected by the Minister of Knowledge Economy as prescribed by Presidential Decree. <Amended by Act No. 8852, Feb. 29, 2008>
(3) through (5) Deleted. <by Act No. 9368, Jan. 30, 2009>
ADDENDUM
This Act shall enter into force six months after its promulgation.
ADDENDA<Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 7 Omitted.
ADDENDUM<Act No. 8900, Mar. 14, 2008>
This Act shall enter into force on the date of its promulgation.
ADDENDUM<Act No. 9227, Dec. 26, 2008>
This Act shall enter into force on the date of its promulgation.
ADDENDUM<Act No. 9368, Jan. 30, 2009>
This Act shall enter into force three months after its promulgation.
ADDENDA<Act No. 10962, Jul. 25, 2011>
(1) (Enforcement Date) This Act shall enter into force six months after its promulgation.
(2) (Transitional Measures concerning Previous Basic Plan) A basic plan concerning the prevention divulgence and protection of industrial technology which has been established by previous provisions as at the time this Act enters into force shall be deemed a comprehensive plan concerning the prevention divulgence and protection of industrial technology which has been established in accordance with this Act.
(3) (Transitional Measures concerning Previous Advice for Rectification) Advice for rectification which has been offered by the Industrial Technology Protection Committee in accordance with the previous provisions as at the time this Act enters into force shall be deemed advice for rectification which has been offered by the Minister of Knowledge Economy pursuant to this Act.