ACT ON SUPPORT FOR PROTECTION OF TECHNOLOGIES OF SMALL AND MEDIUM ENTERPRISES
Act No. 12696, May 28, 2014
Amended by Act No. 14368, Dec. 2, 2016
Act No. 14839, Jul. 26, 2017
Act No. 15692, jun. 12, 2018
Act No. 17559, Oct. 20, 2020
CHAPTER I GENERAL PROVISIONS
The purpose of this Act is to strengthen the capability of small and medium enterprises to protect technologies and their technical competitiveness, by expanding infrastructure to protect technologies of small and medium enterprises and by formulating and implementing policies related thereto, thereby contributing to the development of the national economy.
The terms used in this Act are defined as follows: <Amended on Jun. 12, 2018; Oct. 20, 2020>
| 2. | The term "technologies of small and medium enterprises" means the technologies or management information having independent economic value necessary for developing, producing, disseminating, and using the products or services produced or to be produced by small and medium entrepreneurs defined in subparagraph 2 of Article 2 of the Act on the Promotion of Technology Innovation of Small and Medium Enterprises (hereinafter referred to as “small and medium entrepreneurs”); |
| 3. | The term "act of infringement of technologies of small and medium enterprises" means any of the following acts: |
| (a) | Improperly acquiring, using, or disclosing (including providing information to a specific person in secret; hereinafter the same shall apply) technologies of small and medium enterprises which are not known publicly and are kept confidential (hereinafter referred to as “technologies of small and medium enterprises subject to infringement”); |
| (b) | Acquiring, using, or disclosing technologies of small and medium enterprises subject to infringement, knowing the involvement of any act prescribed in item (a); |
| (c) | Acquiring, using, or disclosing technologies of small and medium enterprises subject to infringement, without knowing the involvement of any act prescribed in item (a) by gross negligence. |
| Article 3 (Responsibilities of Government) |
| (1) | The Government shall formulate and implement comprehensive policies necessary to strengthen the capability of small and medium enterprises to protect technologies and to protect the technologies of small and medium enterprises. |
| (2) | Local governments shall formulate and implement policies necessary to protect technologies of small and medium enterprises by region, taking into consideration Government policies referred to in paragraph (1) and the regional characteristics. |
| Article 4 (Relationship to Other Statutes) |
CHAPTER II FORMULATION AND IMPLEMENTATION OF PLANS TO SUPPORT PROTECTION OF TECHNOLOGIES OF SMALL AND MEDIUM ENTERPRISES
| Article 5 (Formulation of Support Plans for Protection of Technologies of Small and Medium Enterprises) |
| (1) | The Minister of SMEs and Startups shall formulate and establish a support plan to protect technologies of small and medium enterprises (hereinafter referred to as "support plan") every three years. <Amended on Jul. 26, 2017> |
| (2) | In formulating a support plan, the Minister of SMEs and Startups may hear opinions of the heads of related central administrative agencies, the Special Metropolitan City Mayor, Metropolitan City Mayors, Do Governors, the Special Self-Governing Province Governor, the heads of Sis (excluding the Mayor of an administrative Si of a Special Self-Governing Do), Guns and Gus (referring to the heads of autonomous Gus). <Amended on Jul. 26, 2017> |
| (3) | Each support plan shall include the following matters: |
| 1. | Basic objectives and direction-setting for the promotion of technology protection for small and medium enterprises; |
| 2. | Establishment of foundation and promotion plans to protect technologies of small and medium enterprises; |
| 3. | Matters concerning the support to protect technologies of small and medium enterprises extending their business abroad; |
| 4. | Matters concerning the research and development to protect technologies of small and medium enterprises; |
| 5. | Matters concerning the training of professional human resources to protect technologies of small and medium enterprises; |
| 6. | Matters concerning the public relations and education to protect technologies of small and medium enterprises; |
| 7. | Matters concerning the international cooperation to protect technologies of small and medium enterprises; |
| 8. | Other matters necessary to protect technologies of small and medium enterprises. |
| (4) | In order to formulate a support plan, the Minister of SMEs and Startups may request necessary data from the heads of related central administrative agencies or local governments, or the heads of institutions or organizations related to the protection of technologies of small and medium enterprises. In such cases, a person in receipt of a request to submit data shall cooperate therewith, except in extenuating circumstances. <Amended on Jul. 26, 2017> |
| Article 6 (Consultation on Policies for Protection of Technologies of Small and Medium Enterprises) |
Where necessary to formulate and implement policies to protect technologies of small and medium enterprises, the Minister of SMEs and Startups may consult with or seek counsel from the heads of related central administrative agencies, the heads of intelligence and investigative agencies, related institutions or organizations, or experts. <Amended on Jul. 26, 2017>
| Article 7 (Fact-Finding Surveys for Strengthening Capability to Protect Security of Technologies of Small and Medium Enterprises) |
| (1) | In order to strengthen the capacity to protect technologies of small and medium enterprises, the Minister of SMEs and Startups shall conduct a fact-finding survey on the following matters every year: <Amended on Dec. 2, 2016; Jul. 26, 2017> |
| 1. | Small and medium enterprises’ level of protection of technologies and their relevant capacity; |
| 2. | Small and medium enterprises’ possession and management of technical human resource; |
| 3. | Small and medium enterprises’ management of technical know-how and infringement on their technical know-how; |
| 4. | Difficulties and weak points in protecting small and medium enterprises’ technologies; |
| 5. | Other matters deemed necessary by the Minister of SMEs and Startups to strengthen the capacity to protect technologies of small and medium enterprises. |
| (2) | In order to conduct a fact-finding survey under paragraph (1), the Minister of SMEs and Startups may request small and medium enterprises, or related institutions or organizations to submit data or provide cooperation necessary for the survey. In such cases, persons in receipt of such request shall comply therewith except in extenuating circumstances. <Amended on Jul. 26, 2017> |
| (3) | Necessary matters regarding the method of and procedures for fact-finding surveys referred to in paragraph (1) shall be prescribed by Presidential Decree. <Amended on Dec. 2, 2016> |
| Article 8 (Formulation of Guidelines for Protection of Technologies of Small and Medium Enterprises) |
| (1) | The Minister of SMEs and Startups may formulate guidelines for the methods, procedures, etc. necessary to prevent the leakage, and to protect technologies, of small and medium enterprises (hereinafter referred to as "protection guidelines"), after hearing the opinions of the experts, institutions or organizations in related fields. <Amended on Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups shall regularly modify and supplement the protection guidelines taking into consideration the findings, etc. of the fact-finding surveys conducted under Article 7 and make them available for use by small and medium enterprises. <Amended on Jul. 26, 2017> |
CHAPTER III PROTECTION OF TECHNOLOGIES OF SMALL AND MEDIUM ENTERPRISES AND SUPPORT PROJECTS FOR PROTECTION THEREOF
| Article 8-2 (Reporting and Investigation on Act of Infringement of Technologies of Small and Medium Enterprises) |
| (1) | Small and medium enterprises and small and medium entrepreneurs which suffer any act of infringement of technologies of small and medium enterprises (hereinafter referred to as “small and medium entrepreneurs, etc.”) may report such fact to the Minister of SMEs and Startups and request him/her to take necessary measures. |
| (2) | Small and medium entrepreneurs, etc. who intend to file a report under paragraph (1) shall submit a report thereon to the Minister of SMEs and Startups, along with written evidential documents capable of verifying such damages. |
| (3) | Where deemed necessary for the resolution of disputes, the Minister of SMEs and Startups who receives a report under paragraph (1) may recommend mediation or arbitration by the Commission for Mediation and Arbitration of Disputes on Technologies of Small and Medium Enterprises. |
| (4) | Where the Minister of SMEs and Startups receives a report under paragraph (1), he/she may request the relevant organizations or business entities to submit materials to investigate the act of infringement of technologies of small and medium enterprises or have public officials under his/her control enter offices, places of business, and other necessary places to investigate books of accounts, documents, facilities, and other items. |
| (5) | Public officials who conduct an investigation pursuant to paragraph (4) shall carry documents indicating their authority and present them to relevant persons. |
[This Article Newly Inserted on Jun. 12, 2018]
| Article 8-3 (Recommendation and Publication of Act of Infringement of Technologies of Small and Medium Enterprises) |
| (1) | Where the Minister of SMEs and Startups has considerable grounds to determine that there has been any act of infringement of technologies of small and medium enterprises by a respondent according to the result of an investigation conducted under Article 8-2, and damage has already occurred or failure to take action is likely to cause damage that is difficult to remedy, he/she may recommend that the respondent suspend such act, prevent recurrence in the future, and take corrective measures for other necessary matters within a given period not exceeding 30 days. |
| (2) | Where small and medium entrepreneurs, etc. who have filed a report pursuant to Article 8-2 (1) file an application for mediation or arbitration with the Commission for Mediation and Arbitration of Disputes on Technologies of Small and Medium Enterprises under Article 23, the Minister of SMEs and Startups need not make recommendation under paragraph (1) until such proceedings for mediation or arbitration are ended. |
| (3) | Where the respondent fails to comply with the recommendation under paragraph (1), the Minister of SMEs and Startups may publish the subject of the recommendation, its details, or the like. |
| (4) | Matters necessary for the procedures, methods, etc. of the recommendation and publication under paragraphs (1) through (3) shall be prescribed by Presidential Decree. |
[This Article Newly Inserted on Jun. 12, 2018]
| Article 8-4 (Hearing of Opinions and Request for Cooperation) |
| (1) | Where deemed necessary to make recommendation under Article 8-3 (1), the Minister of SMEs and Startups may hear opinions of the relevant parties, interested persons, or persons of reference, as prescribed by Presidential Decree. |
| (2) | Where deemed necessary to make recommendation under Article 8-3 (1), the Minister of SMEs and Startups may hear opinions of, or request support for investigation or other necessary cooperation from, the heads of relevant administrative agencies. |
[This Article Newly Inserted on Jun. 12, 2018]
| Article 9 (Support for Utilization of Technical Data Bailment System) |
| (2) | In order to facilitate the commercialization of technologies defined in subparagraph 3 of Article 2 of the Technology Transfer and Commercialization Promotion Act, the Minister of SMEs and Startups may promote a support project which uses technical data under bailment under paragraph (1) as collateral and may grant subsidies to cover all or part of the expenses incurred in performing such project. <Amended on Jul. 26, 2017> |
| (4) | Other matters necessary to support the utilization of the technical data bailment system for small and medium enterprises shall be prescribed by Presidential Decree. |
| Article 10 (Support for Protection of Outcomes of National Research and Development Projects) |
| (1) | In order to protect the outcomes of the national research and development projects performed by small and medium enterprises, the Government may implement the following support projects: |
| 1. | Support for the utilization of the technical data bailment system under Article 9; |
| 2. | Support for the technology protection control system under Article 18; |
| 3. | Support for the establishment of security systems under Article 19; |
| 4. | Other projects necessary to protect the outcomes of national research and development projects. |
| (2) | The Minister of SMEs and Startups may entrust the projects prescribed in the subparagraphs of paragraph (1) to universities, colleges, research institutes, public institutions and organizations, small and medium enterprises, etc. and may grant subsidies to cover all or part of the expenses incurred in performing such projects. <Amended on Jul. 26, 2017> |
| Article 11 (Presentation of opinions and Recommendation for Improvement) |
The Minister of SMEs and Startups may present his/her opinion on the statutes or regulations or municipal ordinances that contain the matters affecting the protection of technologies of small and medium enterprises to related institutions or recommend them to improve the actual state of the protection of technologies of small and medium enterprises. <Amended on Jul. 26, 2017>
| Article 12 (Diagnosis of and Counselling on Protection of Technologies of Small and Medium Enterprises) |
| (1) | In order to resolve difficulties related to the protection of technologies of small and medium enterprises, the Minister of SMEs and Startups may promote the following projects: <Amended on Jul. 26, 2017> |
| 1. | Receipt of report on infringement and divulging technologies of small and medium enterprises; |
| 2. | Diagnosis of the protection of technologies by dispatching security specialists to the field; |
| 3. | Counselling on the protection of technologies of small and medium enterprises and the relief of damage; |
| 4. | Counselling on the establishment of security systems; |
| 5. | Other projects necessary to protect technologies of small and medium enterprises. |
| (2) | The Minister of SMEs and Startups shall take necessary measures in consultation with the heads of related institutions, such as investigative agencies, when any technologies of small and medium enterprises are likely to be or are infringed on in the course of performing his/her duties under paragraph (1). <Amended on Jul. 26, 2017> |
| Article 13 (Protection of Technologies of Small and Medium Enterprises Extending Business Abroad) |
| (1) | In order to protect technologies of small and medium enterprises expanding their business abroad, the Minister of SMEs and Startups may implement the following projects: <Amended on Jul. 26, 2017> |
| 1. | Formulation and dissemination of protection guidelines to protect technologies of small and medium enterprises extending their business abroad; |
| 2. | Fact-finding surveys on the overseas divulging technologies; |
| 3. | Education on security, and counselling and consulting for small and medium enterprises expanding their business abroad; |
| 4. | Collection, analysis and dissemination of overseas information on technology protection; |
| 5. | Other projects necessary to protect technologies of small and medium enterprises extending their business abroad. |
| (2) | In order to promote the projects prescribed in paragraph (1), the Minister of SMEs and Startups may request related information from the heads of intelligence and investigative agencies. <Amended on Jul. 26, 2017> |
| (3) | The Minister of SMEs and Startups may outsource the projects prescribed in subparagraphs of paragraph (1) to related institutions or organizations, as prescribed by Presidential Decree, and may grant subsidies to cover all or part of the expenses incurred in performing such projects. <Amended on Jul. 26, 2017> |
CHAPTER IV ESTABLISHMENT OF FOUNDATION TO PROTECT TECHNOLOGIES OF SMALL AND MEDIUM ENTERPRISES
| Article 14 (Institutions Exclusively in Charge of Support for Protection of Technologies of Small and Medium Enterprises) |
| (1) | The Minister of SMEs and Startups may designate an institution to be exclusively in charge of the affairs related to the support to protect technologies of small and medium enterprises (hereinafter referred to as "exclusive institution"). <Amended on Jul. 26, 2017> |
| (2) | The Government may grant subsidies to cover all or part of the expenses incurred in performing the duties of exclusive institutions. |
| (3) | Where any exclusive institution designated under paragraph (1) falls under any of the following cases, the Minister of SMEs and Startups may revoke the designation: Provided, That in the case of subparagraph 1, the designation shall be revoked: <Amended on Jul. 26, 2017> |
| 1. | Where the designation is obtained by fraudulent or other illegal means; |
| 2. | Where it fails to meet any of the designation criteria referred to in paragraph (4); |
| 3. | Where it fails to perform designated duties for not less than three months without any just cause. |
| (4) | Matters necessary for the designation criteria and the operation of exclusive institutions shall be prescribed by Presidential Decree. |
| Article 15 (Facilitation and Dissemination of Development of Security Technologies) |
| (1) | In order to facilitate the development of security technologies for small and medium enterprises and to effectively disseminate them to small and medium enterprises, the Minister of SMEs and Startups may promote the following projects: <Amended on Jul. 26, 2017> |
| 1. | Examination of the quality of security technologies, and research and development of security technologies; |
| 2. | Evaluation and commercialization of security technologies; |
| 3. | Dissemination and diffusion of security technologies; |
| 4. | Other projects necessary to develop security technologies. |
| (2) | When necessary to develop security technologies, the Minister of SMEs and Startups may entrust the projects prescribed in subparagraphs of paragraph (1) to related institutions or organizations and may grant subsidies to cover all or part of the expenses incurred in performing such projects. <Amended on Jul. 26, 2017> |
| (3) | Matters necessary for the scope of the affairs to be entrusted under paragraph (2), and the methods, procedures, etc. to select institutions to be entrusted shall be prescribed by Presidential Decree. |
| Article 16 (Training of Professional Human Resources for Technology Protection) |
| (1) | The Minister of SMEs and Startups may conduct education and training to train professional human resources to protect technology and to improve their capabilities. <Amended on Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups may designate universities, colleges, research institutes, or other institutions or organizations as institutions for training professional human resources for technology protection and may grant subsidies to cover all or part of the expenses incurred in performing the relevant projects. <Amended on Jul. 26, 2017> |
| (3) | Where any institution for training professional human resources for technology protection designated under paragraph (2) falls under any of the following cases, the Minister of SMEs and Startups may revoke the designation: Provided, That in the case of subparagraph 1, such designation shall be revoked: <Amended on Jul. 26, 2017> |
| 1. | Where the designation is obtained by fraudulent or other illegal means; |
| 2. | Where it fails to meet the designation criteria referred to in paragraph (4) for not less than three months; |
| 3. | Where it manages a person who has not completed education as a person who has completed education. |
| (4) | Matters necessary for the designation criteria and the operation of institutions for training professional human resources under paragraph (2) shall be prescribed by Presidential Decree. |
| Article 17 (Public Relations and Education on Protection of Technologies of Small and Medium Enterprises) |
| (1) | The Minister of SMEs and Startups may promote public relations projects to enhance citizens' cognizance of the protection of technologies of small and medium enterprises. <Amended on Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups may conduct public relations campaigns and education on the prevention of divulging and the protection of technologies targeting the executive officers and employees of large enterprises, and small and medium enterprises. <Amended on Jul. 26, 2017> |
| (3) | The Minister of SMEs and Startups may entrust the projects referred to in paragraph (2) to related institutions or organizations and may grant subsidies to cover all or part of the expenses incurred in performing such projects. <Amended on Jul. 26, 2017> |
| Article 18 (Provision of Technology Protection Control Service) |
| (2) | In operating a technology protection control service, the Minister of SMEs and Startups shall manage personal information to the extent not violating the related statutes, such as the Personal Information Protection Act. <Amended on Jul. 26, 2017> |
| (3) | The Minister of SMEs and Startups may entrust related institutions or organizations with the technology protection control service provided for in paragraph (1) and may grant subsidies to cover all or part of the expenses required for the implementation of the relevant project. <Amended on Jul. 26, 2017> |
| (4) | Other matters necessary to provide technology protection control service shall be prescribed by Presidential Decree. |
| Article 19 (Support for Establishment of Security Systems) |
| (1) | The Minister of SMEs and Startups may provide support for the planning and establishment of security systems suitable for small and medium enterprises through precise diagnosis of the security environment of small and medium enterprises. <Amended on Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups may outsource to related institutions or organizations, the affairs referred to in paragraph (1) and grant subsidies to cover all or part of the expenses incurred in implementing the relevant project. <Amended on Jul. 26, 2017> |
| (3) | Other matters necessary to support the establishment of security systems shall be prescribed by Presidential Decree. |
| Article 20 (International Cooperation) |
In order to promote international cooperation concerning the protection of technologies of small and medium enterprises, the Minister of SMEs and Startups may provide support for the following matters: <Amended on Jul. 26, 2017>
| 1. | International standardization and joint international research and development of security systems; |
| 2. | Cooperation with international organizations and foreign governments; |
| 3. | International cooperation in the private sector; |
| 4. | International exchanges of professional human resources; |
| 5. | Participation in and hosting of international exhibitions and academic conferences; |
| 6. | Other matters requiring support in connection with international cooperation. |
| Article 21 (Bilateral Cooperation for Technology Protection) |
| (1) | The Government shall strive to create a sound environment for technology protection to maintain and develop bilateral cooperative relationship between large enterprises and small and medium enterprises, and may provide necessary support therefor. |
| (2) | Large enterprises shall strive to protect the technologies of small and medium enterprises and related human resources and to ensure that they do not suffer losses, by acting in good faith. |
| Article 22 (Bounties for Protection of Technologies of Small and Medium Enterprises) |
| (1) | The Minister of SMEs and Startups may grant bounties to a person who has made a significant contribution to the protection of technologies of small and medium enterprises. <Amended on Jul. 26, 2017> |
| (2) | Matters necessary for the standards, methods, procedures, etc. of the payment of bounties under paragraph (1) shall be prescribed by Presidential Decree. |
CHAPTER V MEDIATION AND ARBITRATION OF DISPUTES
| Article 23 (Establishment of Commission for Mediation and Arbitration of Disputes on Technologies of Small and Medium Enterprises) |
| (1) | In order to promptly mediate and arbitrate disputes related to the protection of technologies of small and medium enterprises, the Commission for Mediation and Arbitration of Disputes on Technologies of Small and Medium Enterprises (hereinafter referred to as "Commission") shall be established under the jurisdiction of the Minister of SMEs and Startups. <Amended on Jul. 26, 2017> |
| (2) | The Commission shall deliberate and resolve on the following matters: |
| 1. | Matters concerning mediation and arbitration of disputes; |
| 2. | Matters concerning organizing arbitration division and arbitration division; |
| 3. | Matters concerning the enactment, amendment and repeal of the rules of the Commission; |
| 4. | Other matters referred to the meetings of the Commission by the chairperson of the Commission. |
| (3) | The Commission shall be comprised of not exceeding 50 members, including one chairperson. |
| (4) | Members of the Commission (hereinafter referred to as "members") shall be appointed or commissioned by the Minister of SMEs and Startups from among the following persons, and the chairperson shall be elected from among and by its members: <Amended on Jul. 26, 2017> |
| 1. | A person who serves or has served at a university, college or publicly- authorized research institute as an associate professor or higher or a position corresponding thereto, and majored in the studies related to the field of the protection of technology or information; |
| 2. | A person who serves or has served as a public official of Grade IV or higher or a position corresponding thereto, and has experience in the protection of technologies of small and medium enterprises; |
| 3. | A person who serves as a judge or prosecutor; |
| 4. | A person who is qualified as an attorney-at-law, a licensed patent attorney, a certified public accountant, or an engineer; |
| 6. | Other persons with extensive knowledge on and experience in the protection of technologies of small and medium enterprises. |
| (5) | The term of office of the members shall be three years, and consecutive extension of the term is permitted: Provided, That the term of office of a member in active service who falls under paragraph (4) 3 shall be his/her term of office at the relevant position. |
| (6) | If any vacancy arises among the members, a supplementary member shall be appointed or commissioned pursuant to paragraph (4), and the term of office of such supplementary member shall be the remainder of his/her predecessor's term of office. |
| (7) | A majority of all the incumbent members shall constitute a quorum for a meeting of the Commission, and any decision thereof shall require the concurring vote of at least a majority of those present. |
| (8) | Except as provided in paragraphs (1) through (7), matters necessary for the organization and operation of the Commission shall be prescribed by Presidential Decree. |
| Article 24 (Exclusion of Members for Mediation or Arbitration) |
| (1) | A member shall be excluded from performing his/her duties in any of the following cases: |
| 1. | Where he/she, or a person who is or was his/her spouse, becomes a party to the relevant case of dispute (hereinafter referred to as "case") or is holding any right or is subject to any duty jointly with a party to such case; |
| 2. | Where he/she is or was a relative of a party to the case; |
| 3. | Where he/she has given testimony or conducted appraisal with respect to the case; |
| 4. | Where he/she is or was involved in the case as an agent, or an executive officer or employee of a party to the relevant case. |
| (2) | Where a member in charge of the case falls under any ground for exclusion, the mediation division or arbitration division to which he/she belongs shall decide to exclude him/her ex officio or after receiving an application therefor from a party to the relevant case. |
| (3) | If any ground exists for which it would be difficult to expect the impartial performance of the duties of a member in charge of the case, a party to the case may file a request for the challenge to him/her with the mediation division or arbitration division in charge of the relevant case. |
| (4) | The determination on an application for challenge shall be made by the mediation division or arbitration division in charge of the case, and the relevant member and both parties to the relevant case shall not object to such decision. |
| (5) | A member who falls under any ground referred to in paragraph (1) or (3) shall abstain from performing his/her duties in the relevant case. In such cases, he/she needs not to obtain permission from the mediation division or arbitration division in charge of the relevant case. |
| (6) | Where any request for challenge is filed under paragraph (3), the mediation division or arbitration division to which the relevant member belongs shall suspend the mediation or arbitration proceedings until a determination is made on such request. |
| (7) | Where any vacancy arises among the members of a mediation division or arbitration division due to exclusion, challenge or abstention, the chairperson of the Commission shall appoint a member to fill the vacancy in the relevant division. |
| (8) | Paragraphs (1) through (6) shall apply mutatis mutandis to employees involved in the mediation or arbitration proceedings. |
| Article 25 (Mediation of Disputes) |
| (1) | In order to efficiently perform its duties, the Commission may have a mediation division comprised of not more than five members, and the head of the mediation division shall be appointed by the chairperson of the Commission from among the members qualified as attorneys-at-law or licensed patent attorneys. |
| (2) | A majority of the members, including the head of the mediation division, shall constitute a quorum for a meeting of the mediation division, and any decision thereof shall require the concurring vote of at least a majority of those present. |
| (3) | A person who intends to have any dispute on the protection of technologies of small and medium enterprises mediated may file a request for the mediation of the dispute with the Commission, stating the purport and the cause of the request. |
| (4) | The mediation of a dispute under paragraph (3) shall be conducted by the mediation division provided for in paragraph (1). |
| (5) | If any mediation is necessary under paragraph (3), the mediation division may request related data from a party to the case, and in such cases, the party to the case may submit evaluation data, etc. prepared by a technology evaluation agency designated under Article 35 of the Technology Transfer and Commercialization Promotion Act to calculate the amount of compensation for damage. |
| (6) | Mediation shall be duly constituted by stating in a protocol, by both parties to the case under paragraph (3), the matters agreed on the details of mediation in which infringement on technologies and compensation for loss, etc. are reflected, and in such cases, the relevant protocol shall have the same effect as settlement in court: Provided, That the same shall not apply to the matters which cannot be left at the disposal of the parties to the case. |
| (7) | Except as provided in this Act, the provisions of the Judicial Conciliation of Civil Disputes Act shall apply mutatis mutandis to the dispute mediation concerning the protection of technologies of small and medium enterprises unless they are contrary to the nature thereof. |
| Article 26 (Arbitration of Disputes) |
| (1) | In order to efficiently conduct dispute arbitration, the Commission may establish an arbitration division comprised of not more than five members, and the head of the arbitration division shall be appointed by the chairperson of the Commission from among members qualified as judges or attorneys-at-law. |
| (2) | A majority of the members, including the head of the arbitration division, shall constitute a quorum for a meeting of the arbitration division, and any decision thereof shall require the concurring vote of at least a majority of those present. |
| (3) | A person who intends to have any dispute arbitrated may file a request for arbitration after agreeing that he/she will accept the award in the arbitration issued by the arbitration division. |
| (4) | A request for arbitration prescribed in paragraph (3) may be filed even when the relevant mediation proceedings are in progress. In such cases, the relevant mediation shall be deemed suspended, and all documents, assertions, or substantiation submitted during the mediation proceedings shall be deemed submitted during the arbitration proceedings. |
| (5) | The parties to a case may agree to select an arbitration division in charge of the arbitration by any of the following methods: Provided, That where any agreement is not reached within 15 days from the date the arbitration was requested under paragraph (3), they shall be deemed to have agreed to select the method prescribed in subparagraph 2: |
| 1. | The method of delegating the chairperson with the designation of an arbitration division in charge of the arbitration; |
| 2. | The method of selecting an arbitration division proposed by the chairperson by mutual agreement. |
| (6) | Where the parties to the case fail to select an arbitration division within 15 days from the date a proposal is received under paragraph (5) 2, the chairperson may designate an arbitration division to be in charge of the arbitration proceedings. |
| (7) | Where the chairperson designates an arbitration division under paragraph (5) 1 or (6), the parties to the case shall not object to such designation. |
| (8) | An award in arbitration shall have the same effect as the final and conclusive judgment between both parties to the case. |
| (9) | Where necessary for the operation of arbitration, the Minister of SMEs and Startups may entrust it to a related institution or organization and may grant subsidies to cover all or part of the expenses incurred in performing such affairs. <Amended on Jul. 26, 2017> |
| (10) | Except as provided in this Act, the provisions of the Arbitration Act shall apply mutatis mutandis to the dispute arbitration concerning the technologies of small and medium enterprises unless they are contrary to the nature thereof. |
| Article 27 (Request for Data) |
| (1) | A mediation division or arbitration division may request data necessary for the dispute mediation from the parties to the case or persons of reference. In such cases, the parties to the relevant case or persons of reference shall cooperate with such request except in extenuating circumstances. |
| (2) | Where a mediation division or arbitration division deems it necessary, it may have the parties to the case or persons of reference attend its meetings, and hear their opinions. |
| (3) | Where a mediation division or arbitration division requests data under paragraph (1) or hear opinions under paragraph (2), it shall be done in a closed setting, and it shall preserve the confidentiality of the submitted data and the opinions they have heard. |
| Article 28 (Expenses for Mediation or Arbitration) |
| (1) | The Commission may apportion expenses to a person who has requested mediation or arbitration of a dispute share the expenses for the mediation or arbitration, as prescribed by Presidential Decree. |
| (2) | The Minister of SMEs and Startups may grant subsidies to cover the expenses incurred in operating the Commission. <Amended on Jul. 26, 2017> |
CHAPTER Ⅵ SUPPLEMENTARY PROVISIONS
| Article 29 (Special Cases concerning Taxation) |
In order to revoke the designation of an exclusive institution under Article 14 (3) or an institution for training professional human resources for protection of technologies under Article 16 (3), the Minister of SMEs and Startups shall hold a hearing. <Amended on Jul. 26, 2017>
| Article 31 (Delegation or Entrustment of Authority) |
| (1) | The Minister of SMEs and Startups may delegate part of his/her authority under this Act to the heads of its affiliated institutions or the heads of local governments, as prescribed by Presidential Decree. <Amended on Jul. 26, 2017> |
| (2) | The Minister of SMEs and Startups may entrust part of his/her duties under this Act to the institutions and organizations related to the protection of technologies of small and medium enterprises, as prescribed by Presidential Decree. <Amended on Jul. 26, 2017> |
| Article 32 (Duty to Maintain Confidentiality) |
No person who performs or has performed any of the following affairs shall divulge or misappropriate any confidential information learned in the course of performing his/her duties: <Amended on Jul. 26, 2017>
| 1. | A person who performs affairs related to fact-finding surveys on the current state of the protection and management of technologies of small and medium enterprises under Article 7; |
| 2. | A person who performs the affairs related to the receipt of reports on infringement, and the diagnosis, counselling, etc. of the protection of technologies under Article 12; |
| 3. | A person who performs research and development of security technologies as an employee of a developer of technologies of small and medium enterprises under Article 15; |
| 4. | A person who performs technology protection control services under Article 18; |
| 5. | A person who performs the mediation and arbitration of disputes on technologies of small and medium enterprises under Article 23; |
| 6. | A person who performs the duties of the Minister of SMEs and Startups, upon being delegated or entrusted with part of his/her authority under Article 31. |
| Article 33 (Legal Fiction as Public Officials in Application of Penalty Provisions) |
CHAPTER VII PENALTY PROVISIONS
| Article 34 (Penalty Provisions) |
A person who violates any of the duties to preserve confidentiality under Article 32 shall be punished by imprisonment with labor for not more than three years or by a fine not exceeding 30 million won.
| Article 35 (Administrative Fines) |
| (1) | Any person who fails to submit materials prescribed in Article 8-2 (4), or who submits false materials or refuses, obstructs, or evades an investigation shall be subject to an administrative fine of not exceeding 10 million won. |
| (2) | Administrative fines prescribed in paragraph (1) shall be imposed and collected by the Minister of SMEs and Startups, as prescribed by Presidential Decree. |
[This Article Newly Inserted on Jun. 12, 2018]
ADDENDUM <Act No. 12696, May 28, 2014>
This Act shall enter into force six months after the date of its promulgation.
ADDENDUM <Act No. 14368, Dec. 2, 2016>
This Act shall enter into force six months after the date of its promulgation.
ADDENDA <Act No. 14839, Jul. 26, 2017>
Article 1 (Enforcement Date)
| (1) | This Act shall enter into force on the date of its promulgation: Provided, That the amended parts of Acts, among Acts amended pursuant to Article 5 of the Addenda, which were promulgated before this Act enters into force but the enforcement dates of which have not yet arrived, shall enter into force on the enforcement date of the respective Acts. |
Articles 2 through 6 Omitted.
ADDENDA <Act No. 15692, Jun. 12, 2018>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Article 2 (Applicability to Reporting and Investigation of Act of Infringement of Technologies of Small and Medium Enterprises)
The amended provisions of Articles 8-2 and 8-3 shall begin to apply to infringements of technologies of small and medium enterprises after this Act enters into force.
ADDENDA <Act No. 17559, Oct. 20, 2020>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Applicability to Infringement on Technologies of Small and Medium Enterprises)
The amended provisions of subparagraph 3 (a) of Article 2 shall begin to apply to the technologies of small and medium enterprises infringed on after this Act enters into force.