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Recent Amendments to Korea’s Industrial Technology Protection Act: Key Changes and Implications for 2025

2025.06.16

Introduction 
 
On December 27, 2024, the National Assembly of the Republic of Korea passed significant amendments to the Act on Prevention of Divulgence and Protection of Industrial Technology (the "Industrial Technology Protection Act" or “ITPA”), which will take effect on July 22, 2025.  These reforms are designed to strengthen Korea’s legal framework for protecting core industrial technologies from unauthorized disclosure and align with the Ministry of Trade, Industry and Energy’s (MOTIE) newly announced Fifth Comprehensive Plan for the Prevention of Divulgence and Protection of Industrial Technology.1)  The Plan expands protections for core technologies (such as those in the battery and space sectors), enhances M&A oversight, and increases support for vulnerable institutions like universities and SMEs.2)  Collectively, these measures underscore the government’s commitment to bolstering national technology security.  The amended Enforcement Decree reflects a clear policy shift across different areas of the governance framework. 
 
 
1. Key Directions of the Amendment to the Enforcement Decree 
 
1) Institutional Designation and Oversight 
 
A central feature of the amendments is the formal designation of the Korea Planning & Evaluation Institute of Industrial Technology (KEIT) as the Technology Security Center, as codified in Article 7-2.  KEIT is now authorized to support and supervise institutions managing National Core Technologies (NCTs), with a statutory basis for government budget support.  Additionally, Articles 19(3) and (4) authorize the MOTIE minister to issue written enforcement orders specifying corrective measures and compliance timelines when institutions fail to implement recommended improvements.  As KEIT assumes its regulatory mandate, companies—especially those with foreign investment—should closely monitor its evolving enforcement practices, which will shape future compliance expectations. 
 
2) National Core Technology Designation and Management 
 
The amendments introduce a more structured process for the designation and oversight of NCTs.  Under Article 13-2, MOTIE can now notify eligible institutions—including corporations, research institutes, and universities—to apply for NCT status, with clear guidance on required documentation and procedures.  Article 13-3 establishes processes for registration, modification, and deregistration of NCT holders, ensuring greater administrative transparency.  The amendments also set specific review timelines, such as 45 days for NCT designation reviews and export approvals under Articles 13-2(6), 15(4), and 16(4)—excluding periods for document supplementation from the review clock.  This places greater importance on the quality and completeness of initial filings, as incomplete submissions can significantly delay processing.  For foreign firms considering partnerships, licensing, or M&A activity in Korea, understanding these procedural requirements and anticipating supplementation requests will be critical to avoiding regulatory delays and managing transactional risk. 
 
3) Export Controls and Overseas M&A Review 
 
The revised framework introduces a risk-based approach to export controls.  Under Article 16-2, certain exports may qualify for partial exemption or simplified review if deemed low-risk for potential technology leakage.  At the same time, regulatory oversight for export and M&A enforcement has been significantly strengthened.  Institutions that fail to comply with MOTIE’s suspension, prohibition, or reversal orders regarding unlawful overseas M&As may face fines based on transaction value, as stipulated in Article 18-8.  Additional provisions in Article 37 outline aggravating factors and penalty thresholds, particularly for repeated violations or failure to cooperate with regulatory procedures.  These changes mark a shift from guidance-based compliance to enforcement-backed deterrence.  For multinational investors and Korean entities engaged in cross-border transactions, early-stage risk assessments should now incorporate industrial technology exposure and regulatory impact evaluations as a core element of due diligence. 
 
4) Investigation, Enforcement, and Monitoring 
 
The amendments also enhance the government’s investigatory and monitoring authority.  Article 20(2) now mandates consultation between MOTIE and investigative agencies when evaluating reports of suspected violations, creating a more coordinated pathway for administrative or criminal enforcement.  Article 22 requires annual fact-finding surveys—whether via telecommunication or in-person—whereas previously, no specific timeframe was stipulated.  These changes improve the government’s ability to monitor compliance while maintaining procedural fairness for regulated institutions.  Companies operating in sensitive technological sectors should ensure that their internal controls, reporting systems, and compliance documentation are continuously maintained and audit-ready in anticipation of both electronic and physical reviews. 
 
 
2. Comparison of Current and Amended Provisions of the ITPA 
 
<table cellpadding="8px" style="width:100%; text-align:center; border:1px solid #bbb; border-collapse:collapse;" width="100%">
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			<td style="border: 1px solid rgb(187, 187, 187); background-color: rgb(242, 242, 242);border-top: 2px solid #cc0000; ;padding-right: 12px; padding-left: 12px;" valign="middle" width="5%">#</td>
			<td style="border: 1px solid rgb(187, 187, 187); background-color: rgb(242, 242, 242);border-top: 2px solid #cc0000; ;padding-right: 12px; padding-left: 12px;" valign="middle" width="30%">Provision</td>
			<td style="border: 1px solid rgb(187, 187, 187); background-color: rgb(242, 242, 242);border-top: 2px solid #cc0000; ;padding-right: 12px; padding-left: 12px;" valign="middle" width="25%">Current</td>
			<td style="border: 1px solid rgb(187, 187, 187); background-color: rgb(242, 242, 242);border-top: 2px solid #cc0000; ;padding-right: 12px; padding-left: 12px;" valign="middle" width="40%">Amended</td>
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			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;line-height: 10px; font-size:16px;">1</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 7-2 
			(Designation of Technology Security Center)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; font-size: 16px; line-height: 25px; text-align: left;">N/A</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: middle;font-size:16px; line-height: 25px">New: MOTIE designates KEIT as the Technology Security Center with detailed functions and budget support.</td>
		</tr>
		<tr>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;left;font-size:16px; line-height: 25px" valign="middle">2</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 13-2 
			(Application for Core Technology Determination)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px;line-height: 25px">Entities submit a determination request form with required documents.</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: middle;font-size:16px; line-height: 25px">Clarifies eligible applicants (companies, research institutes, universities, professional organizations, etc.), enables ministerial notification to compel applications, and sets specific documentation and review timelines.</td>
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			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" valign="middle">3</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 13-3 
			(Registration of Core Technology Holder)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px;line-height: 25px">Omitted</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: middle;font-size:16px; line-height: 25px">Adds detailed registration procedures, required documents, and issuance of registration certificates.</td>
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			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" top="" vertical-align:="">4</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 13-4 
			(Deregistration of Core Technology Holder)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px;line-height: 25px">Omitted</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; ; vertical-align: middle;font-size:16px; line-height: 25px">Establishes deregistration procedures with required documentation.</td>
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			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" top="" vertical-align:="">5</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 15 
			(Export Approval for Core Technologies)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px;line-height: 25px">Application procedures outlined.</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; ; vertical-align: middle;font-size:16px; line-height: 25px">Adds procedures for requesting supplementation of documents and a 45-day tech review period.</td>
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			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" top="" vertical-align:="">6</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 16 
			(Export Reporting of Core Technologies)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px; line-height: 25px">Outline of procedures and response timelines.</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; ; vertical-align: middle;font-size:16px; line-height: 25px">Adds same supplementation and timeline provisions as Article 15.</td>
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			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" top="" vertical-align:="">7</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 16-2 
			(Exemption/Simplification of Export Procedures)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px; line-height: 25px">N/A</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; ; vertical-align: middle;font-size:16px; line-height: 25px">Introduces simplified/waived export procedures under specific conditions.</td>
		</tr>
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			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" top="" vertical-align:="">8</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 18-3 
			(Approval of Overseas M&A)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px; line-height: 25px">Entities submit application with required documents.</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; ; vertical-align: middle;font-size:16px; line-height: 25px">Adds supplementation requests from the MOTIE minister if original documents are insufficient, and 45-day review provisions.</td>
		</tr>
		<tr>
			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" top="" vertical-align:="">9</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 18-4 
			(Reporting Progress of Overseas M&A)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px; line-height: 25px">Entities report progress with attached documents.</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; ; vertical-align: middle;font-size:16px; line-height: 25px">Same amendments as Article 18-3.</td>
		</tr>
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			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" top="" vertical-align:="">10</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 18-5 
			(Reporting of Overseas M&A)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px; line-height: 25px">Entities report M&A with relevant documents.</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; ; vertical-align: middle;font-size:16px; line-height: 25px">Adds supplementation procedures and 45-day review timeline.</td>
		</tr>
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			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" top="" vertical-align:="">11</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 18-6 
			(Notification on Suspension/Prohibition/Restoration)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px; line-height: 25px">Obligated parties report actions taken within 15 days.</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; ; vertical-align: middle;font-size:16px; line-height: 25px">Adds attendance request of the head of the organization for consultation be made 5 days prior.</td>
		</tr>
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			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" top="" vertical-align:="">12</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 18-7 
			(Preliminary Review of Overseas M&A)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px; line-height: 25px">Provisions apply mutatis mutandis.</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; ; vertical-align: middle;font-size:16px; line-height: 25px">Clarifies that Articles 17(2) and (3) apply.</td>
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			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" top="" vertical-align:="">13</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 18-8 
			(Imposition Standards for Administrative Fines)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px; line-height: 25px">N/A</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; ; vertical-align: middle;font-size:16px; line-height: 25px">New: Adds standards for administrative fines for first, second, and third offenses.</td>
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			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" top="" vertical-align:="">14</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 19 
			(Implementation of Improvement Recommendations)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px; line-height: 25px">MOTIE minister gives written recommendations.</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; ; vertical-align: middle;font-size:16px; line-height: 25px">Upon receipt of a corrective order from the MOTIE minister, the organization must comply, execute, and report back.</td>
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			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" top="" vertical-align:="">15</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 20 
			(Reporting Industrial Technology Infringement)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px; line-height: 25px">MOTIE minister must consult with the head of the investigative agency on whether the infringement report applies to Article 14 and related provisions.</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; ; vertical-align: middle;font-size:16px; line-height: 25px">Clarifies that both MOTIE and investigative agencies must consult and cooperate on determining report validity.</td>
		</tr>
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			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" top="" vertical-align:="">16</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 22 
			(Fact-Finding Survey for Technology Protection)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px; line-height: 25px">Biennial surveys permitted with option for ad-hoc investigations.</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; ; vertical-align: middle;font-size:16px; line-height: 25px">Adds annual survey mandate and prior notice requirements for onsite inspections.</td>
		</tr>
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			<td align="center" style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px;" top="" vertical-align:="">17</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left;font-size:16px; line-height: 25px">Article 37 
			(Imposition Standards for Fines)</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; vertical-align: center;font-size:16px; line-height: 25px">Fine standards listed.</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding-right: 12px; padding-left: 12px; text-align: left; ; vertical-align: middle;font-size:16px; line-height: 25px">Standards/amounts for fines amended.</td>
		</tr>
	</tbody>
</table>
 
 
3. Implications for Foreign Investors and Companies Operating in Korea 
 
The 2025 amendments to Korea’s Industrial Technology Protection Act represent a decisive shift toward a more assertive, compliance-driven regulatory environment.  Foreign investors and multinational companies operating in Korea should closely monitor these changes, which expand the government’s oversight across the lifecycle of sensitive industrial technologies—from initial designation and registration to export licensing, cross-border M&A, and post-transaction monitoring.  Entities holding or working with technologies that may fall within the scope of NCTs should prepare for enhanced scrutiny, stricter documentation standards, and more defined compliance deadlines. 
 
The designation of KEIT as the Technology Security Center centralizes enforcement, transforming what was previously a fragmented landscape into a unified compliance structure with practical operational reach.  KEIT is expected to play a pivotal role in monitoring institutional behavior, issuing improvement orders, and coordinating oversight alongside MOTIE.  Companies engaged in cross-border transactions—particularly those involving technology transfers, joint R&D, or acquisitions with Korean entities—must recognize that export control reviews and M&A approvals now come with tightened timelines and the risk of administrative fines for non-compliance. 
 
To operate effectively in this environment, foreign entities should reassess their internal risk controls, due diligence procedures, and transactional documentation to ensure alignment with the amended Enforcement Decree.  Legal counsel, both in-house and external, will be essential in evaluating whether a company’s technology exposure or transaction structure triggers NCT-related obligations.  Above all, companies should proactively develop compliance strategies that reflect the new enforcement posture, rather than waiting for regulatory issues to arise. 
 
For further guidance on compliance with the amended ITPA, companies are encouraged to consult with legal professionals experienced in Korean regulatory matters. 
 
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<div style="line-height: 110%;">1 Ministry of Trade, Industry and Energy, Public Notice of Legislative Proposal for the Amendment to the Enforcement Decree and Enforcement Rules of the Industrial Technology Protection Act (Mar. 31, 2025), available at <a href="https://www.motie.go.kr/attach/viewer/095a2dda9c864e1d90d751f7668a1117/e65b1a7cb3167bc32942e25ff3280e2a/778bdbf5db9ced7c8fd52756c00bf0cd" target="_blank">https://www.motie.go.kr/attach/viewer/095a2dda9c864e1d90d751f7668a1117/e65b1a7cb3167bc32942e25ff3280e2a/778bdbf5db9ced7c8fd52756c00bf0cd</a> 
2 Ministry of Trade, Industry and Energy, 5th Comprehensive Plan for the Prevention of Divulgence and Protection of Industrial Technology (Dec., 2024), available at<a href="https://www.motie.go.kr/attach/viewer/095a2dda9c864e1d90d751f7668a1117/f7357be9d185abecc60270ea4422ee56/13055e35ba7465cb478c5b4be490c5a8." target="_blank"> https://www.motie.go.kr/attach/viewer/095a2dda9c864e1d90d751f7668a1117/f7357be9d185abecc60270ea4422ee56/13055e35ba7465cb478c5b4be490c5a8.</a> 
 
 
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<a color:="> </a><a color:="" href="http://Ministry of Trade, Industry and Energy, Public Notice of Legislative Proposal for the Amendment to the Enforcement Decree and Enforcement Rules of the Industrial Technology Protection Act (Mar. 31, 2025), available atMinistry of Trade, Industry and Energy, Public Notice of Legislative Proposal for the Amendment to the Enforcement Decree and Enforcement Rules of the Industrial Technology Protection Act(Mar. 31, 2025)</a>, available at  
 </a>

<a color:="" href="http://Ministry of Trade, Industry and Energy, Public Notice of Legislative Proposal for the Amendment to the Enforcement Decree and Enforcement Rules of the Industrial Technology Protection Act (Mar. 31, 2025), available atMinistry of Trade, Industry and Energy, Public Notice of Legislative Proposal for the Amendment to the Enforcement Decree and Enforcement Rules of the Industrial Technology Protection Act(Mar. 31, 2025)</a>, available at  
 </a></div>
 <a color:="" href="http://Ministry of Trade, Industry and Energy, Public Notice of Legislative Proposal for the Amendment to the Enforcement Decree and Enforcement Rules of the Industrial Technology Protection Act (Mar. 31, 2025), available atMinistry of Trade, Industry and Energy, Public Notice of Legislative Proposal for the Amendment to the Enforcement Decree and Enforcement Rules of the Industrial Technology Protection Act(Mar. 31, 2025)</a>, available at  
 </a>

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