On March 14, 2024, the Ministry of Trade, Industry and Energy (the “MOTIE”) issued proposed amendments to the “Notification Regarding Designation of National Core Technologies” (MOTIE Notice 2024-241, the “Amendments”). The Amendments went into effect on July 5, 2024, after the collection of public comments closed on April 4, 2024. Under the Amendments, (i) four technologies in three fields (i.e., nuclear power, machinery and automobile/railway) were newly designated as national core technologies, (ii) three technologies in the field of nuclear power were removed, and (iii) modifications were made to 24 technologies in eight fields to reflect the current technological status.
Under the Act on Prevention of Divulgence and Protection of Industrial Technology (the “Industrial Technology Act” or “ITA”), companies that hold national core technologies (“NCTs”) are required to implement protective measures, including establishing secured areas and obtaining approval from or reporting to the Minister of the MOTIE before exporting NCTs. Additionally, foreigners seeking to acquire or merge with enterprises that hold NCTs must seek approval from or report to the Minister of the MOTIE.
The Amendments expand the previous list of 75 technologies in 13 fields to 76 technologies in 13 fields. A more detailed review of the newly designated, removed or modified NCTs is as follows.
1. |
New Designations (Proposed): Four Technologies |
Field |
NCT Name |
Nuclear Power (2) |
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Machinery (1) |
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Automobile/Railway (1) |
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2. |
Removed: Three Technologies |
Field |
NCT Name |
Nuclear Power (3) |
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3. |
Modifications: 24 Technologies |
Field |
Prior NCT Name |
Revised NCT Name |
Semiconductor (1) |
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Electrical and Electronics (2) |
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Automobile/Railway (3) |
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Steel (3) |
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Shipbuilding (5) |
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Space (2) |
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Machine (5) |
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Robot (3) |
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The Amendments to the Notification Regarding Designation of National Core Technologies added new NCTs and modified their specifications. We recommend companies to review whether they hold NCTs under the revised rules and the scope of any NCTs they may hold. If companies do hold NCTs, it is crucial to ensure that adequate protective measures are in place and that NCTs are not inadvertently exported without the necessary regulatory approval or reporting.
Related Topics
#Patent #Industrial Security and Export Control #Trade Secret #2024 Issue 2