Signal Small firms report hundreds of technology theft cases and weak legal redress

Summary

The government cites a 2023 estimate by the SME ministry of 299 cases of technology infringement against small firms, with an average loss of 1.82 billion won per case. Litigation is slow, with more than a year on average to reach a first-instance ruling. Plaintiffs win only 32.9 percent of cases and the share of claims upheld is 17.5 percent. In a 2023 ministry survey of supply relationships with private firms, 59.5 percent of small firms named demands to cut supply prices and 26.0 percent named delayed payment as difficulties. A payment indexation system introduced in 2024 is judged to have limited effect because of its narrow coverage.