The Ministry of Trade, Industry and Energy ("MOTIE") has announced Proposed Amendments to the Enforcement Decree and Enforcement Rules of the Act on Prevention of Divulgence and Protection of Industrial Technology ("ITA"; also known as Industrial Technology Protection Act) (MOTIE Public Announcement Nos. 2025-264 and 2025-265, dated April 1, 2025). These amendments aim to enhance the systemic management of industrial technologies, including national core technologies ("NCTs"), by addressing gaps in the current framework. The new provisions also supplement the recently amended ITA1, which is set to take effect on July 22, 2025. Below are the key highlights.
Proposed Amendments
(1) Designation of the Technology Security Center
(Proposed Amendment to Article 7-2 of the Enforcement Decree)
The Korea Planning & Evaluation Institute of Industrial Technology ("KEIT") is slated to serve as the Technology Security Center. In this capacity, KEIT will monitor domestic and global technology trends, assist in policy development for industrial technology protection, and support key tasks such as NCT designation, modification, and revocation. KEIT will also assist the Industrial Technology Protection Committee with various NCT-related responsibilities, including reviewing NCT exports, overseeing cross-border mergers and acquisitions (M&A) involving NCTs, and managing national research and development (R&D) projects.
(2) Verification of NCT Possession
(Proposed Amendment to Article 13-2 of the Enforcement Decree)
The Proposed Amendment introduces a system requiring companies with heightened risks of technology leakage or significant protection needs to undergo verification of NCT possession. MOTIE may request such companies to apply for an NCT determination in specific scenarios, such as:
i. Development of a technology through a national R&D project;
ii. Recognition of a technology as an NCT through patents or publications;
iii. Reports of infringement on industrial technologies, where it is necessary to determine whether such infringed technologies qualify as NCT;
iv. Upon requests from central administrative or investigative agencies; and
v. Export or overseas M&A activities involving potential NCTs.
Notified companies must apply for an NCT determination within 30 days.
(3) Registration Requirements for NCT-Holding Entities
(Proposed Amendment to Article 13-3 of the Enforcement Decree and Articles 1-3 to 1-6 of the Enforcement Regulations)
Companies determined to possess NCTs or national high-tech strategic technologies ("NHTs"), or acquire substantial rights through technology transfers must register as NCT-holding entities within 30 days. Registration applications must include details such as the entity's name, technology field, and specific NCT/NHT-related information. The Proposed Amendments also outline formality requirements for registering, modifying or canceling NCT/NHT-holding entities, as well as the format for registration certificates.
Entities already verified as NCT holders must complete their registration within six months from July 22, 2025, when the amended ITA takes effect. Non-compliance may result in fines of up to KRW 10 million.
(4) Streamlined Approval of Certain NCT Exports
(Proposed Amendment to Article 16-2 of the Enforcement Decree)
MOTIE may simplify or partially exempt the review process for NCT export approvals (conducted by the Industrial Technology Protection Committee or a technology-specific expert committee) in certain low risk cases, such as:
i. Repeated exports of technology;
ii. Exports to subsidiaries or previously approved foreign partners;
iii. Joint research with wholly-owned foreign subsidiaries; and
iv. Applications for foreign government certifications or litigation purposes.
Additionally, blanket approvals or declarations may be allowed for specified periods, based on a range of technologies or potential export partners. These approvals may be granted even when detailed technical data or specific export partners are not identified at the time of application.
(5) Fines for Non-Compliant Overseas M&As
(Proposed Amendment to Article 18-8 of the Enforcement Decree)
MOTIE may issue corrective orders for cross-border M&As involving NCTs if they pose national security risks or proceed without proper approval. Proposed daily enforcement fines are as follows:
- KRW 8 million per day for non-compliance under Article 11-2(8) (serious national security risks); and
- KRW 10 million per day under Article 11-2(10) (fraudulent approval processes).
Fines may increase by up to 50% based on factors such as lack of compliance efforts or severity of non-compliance.
(6) Maximum Review Period for NCT Determination and Export Approval
(Proposed Amendment to Article 13-2, Paragraph 6, Article 15, Paragraph 4, Article 16, Paragraph 4 of the Enforcement Decree)
The Proposed Amendments introduce a maximum review period of 45 days for technology reviews related to NCT determinations and export approvals. This period may be extended once by an additional 45 days. The aim is to enhance predictability and reduce the overall time for technology reviews. However, as before, any time spent responding to official requests for supplementary materials will not count toward the review period.
Next Steps: Review & Comment Period
MOTIE has announced its intention to finalize the Proposed Amendments following consultations with relevant agencies, a review by the Ministry of Government Legislation, and deliberation by the State Council. The amendments are expected to be finalized before the amended ITA takes effect on July 22, 2025. Stakeholders were invited to submit comments on the Proposed Amendments until May 12, 2025. Organizations, groups, or individuals could express their support or opposition during that period.
Key Implications
The Proposed Amendments address several practical issues raised in implementing the ITA and provide detailed guidelines necessary for its enforcement. Notably, MOTIE's ability to request NCT determinations has been clarified, ensuring more precise application of these requirements. Clear criteria and enforcement fines related to non-compliance with corrective measures in overseas M&A transactions involving NCTs have been established. Additionally, companies receiving a notice to apply for an NCT determination must comply within 30 days. Accordingly, businesses should proactively assess whether their technologies might require such determinations under the new framework.
Additionally, companies engaged in exporting NCTs may benefit from procedural simplifications introduced in the Proposed Amendments. These include exemptions and streamlined approval processes for low-risk exports, such as repeated exports or transfers involving previously approved partners. Businesses planning such activities should evaluate whether they qualify for such simplified procedures.
The Proposed Amendments empower MOTIE to establish specific measures for the systematic management of industrial technologies. Thus, companies are advised to closely monitor further developments and ensure compliance with any regulatory updates.
1 For an overview of the key amendments to the ITA, which were passed by the National Assembly during its plenary session on December 27, 2024, please refer to our earlier newsletter (Link).
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