SOUTH KOREA Law and Practice Contributed by: Dongju Kwon, Changkwon Kim, Sejung Lee and Yoon Sun Kim, Yoon & Yang LLC
2.3 Joint Ventures The applicable laws, including the UCPA, do not separately stipulate rights or obligations between parties to a joint venture with respect to trade secrets. However, parties may sign an agreement that includes confidentiality obliga - tions with respect to trade secrets. 2.4 Industrial Espionage As mentioned in 1.14 Criminal Liability , the UCPA imposes criminal penalties for trade secret misappropriation. Moreover, industrial espionage is strictly pun - ished, as exemplified in the case where the relevant information constitutes “national core technology” under the ITPA. Any entity that divulges and misappropriates national core technology for the purpose of using the national core technology or having it used abroad may be punished by a limited penal servitude for at least three years and by a criminal fine not exceed - ing KRW1.5 billion (Article 36(1)). An amendment raising the upper limit of the fine to KRW6.5 bil - lion is expected to take effect on 22 July 2025. If the relevant information constitutes “industrial technology” under the ITPA, the violator may be punished by imprisonment of no more than 15 years and/or a criminal fine not exceeding KRW1.5 billion (Article 36(2)). An amendment raising the upper limit of the fine to KRW3 billion is also expected to take effect on 22 July 2025.
bullet point above or that such disclosure has been involved, or without such knowledge due to gross negligence, after acquiring them. To claim trade secret misappropriation under the UCPA, a trade secret owner should argue or prove that the alleged act meets the requisite elements of the relevant trade secret misappro - priation. 2.2 Employee Relationships No separate requirement is necessary to estab - lish a claim of trade secret misappropriation by or involving an employee. The applicable law also does not impose any particular obligations on an employee with respect to trade secrets. However, an employee generally signs agree - ments with their employer in which they bear obligations of non-disclosure, confidentiality or non-competition, and the employee, in princi - ple, bears such obligations to the extent stated in the relevant agreement. Consequently, where a claim of trade secret misappropriation is by or involves an employee, the acts of misappro - priation related to the violations of confidentiality obligations in Article 2(iii) of the UCPA (see the final three points in 2.1 The Definition of Misap - propriation ) may particularly pose issues. Meanwhile, if the information to be maintained under such agreements is deemed unworthy of protection, the court may determine that the employee’s confidentiality obligation under such agreements is null and void. In addition, the court may shorten the term of the obliga - tion provided in the agreement if it considers this to be unreasonably long given the employee’s freedom to select jobs and transfer to another employer.
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