On July 26, 2022, the Ministry of Trade, Industry and Energy (MOTIE) announced a proposed amendment to the Public Notification on the Designation of National Core Technology ("Proposed Amendment"), with two significant proposed changes: (i) several modifications and additions to the list of national core technologies ("NCTs"); and (ii) a proposal to set a sunset period for technologies designated as NCTs after which the technology can be removed from the list of NCTs, or re-designated as an NCT. The relevant details are set forth below.
1. Modifications to the NCT list
Under the Proposed Amendment, two hydrogen-related technologies are added to the list of NCTs, in consideration of the technologies' economic value as well as recent changes to the technical environment, and one technology in the automobile field has been modified, as follows:
| Field | Newly designated NCTs |
| Hydrogen (2) |
Design, process and manufacturing technologies for fuel cells for construction/industrial machines of 10kW or greater that are capable of continuously operating for 4 hours or more at a current density of 1.0A/cm2 or greater |
| Design, manufacturing, diagnosis and controlling technologies for fixed-type fuel cells with a power generation efficiency of 35% or greater and a durability of 40,000 hours or longer |
| Field | Before amendment | After amendment |
| AutomobileㆍRailway (1) |
Design and manufacturing technologies for hybrid and electric power based vehicle (xEV) systems (limited to control units, battery management systems, and regenerative braking systems) | Design and manufacturing technologies for hybrid and electric power based vehicle (xEV) systems (limited to control units, battery management systems, regenerative braking systems, electric drive systems (motor, inverter) and HVAC (heating, ventilation, and air conditioning) systems) |
Under the current Act on Prevention of Divulgence and Protection of Industrial Technology ("ITA"), a company in possession of an NCT ("Subject Institution") is required to take certain protective measures relating to the NCT, such as designation of a protection zone and appointment of personnel to manage NCTs (Article 10 of the ITA). Where a Subject Institution intends to export an NCT, it must first file a report to or seek approval from MOTIE, depending on the circumstances (Article 11 of the ITA). In addition, where a foreigner intends to acquire or merge with a Subject Institution, the Subject Institution must first obtain approval from or file a report with MOTIE (Article 11-2 of the ITA).
2. Designation of a sunset period for each NCT
The Proposed Amendment also sets a sunset period of up to five years for each NCT, and provides that when designating a new NCT, the MOTIE and related central administrative agencies may decide an applicable sunset period of up to five years. Once the corresponding sunset period expires, the NCT may be removed from the list or re-designated.
Related Topics
