South Korea is shifting how it protects innovation and intellectual property (IP). Instead of relying only on penalties and legal reform, the government is now funding the operational backbone of intellectual property protection. With a KRW 13.4 billion rollout targeting 2,500 SMEs, Korea is treating technology protection as infrastructure that companies actively use, not just a rule enforced after damage is done.

Korea Launches ₩13.4B Integrated Technology Protection Program

On February 10, the Ministry of SMEs and Startups (MSS) announced it will implement the “2026 Integrated Technology Protection Support Program” starting February 11. The program allocates KRW 13.4 billion, a 27 percent increase from the previous year, and expands support coverage to approximately 2,500 small and medium sized enterprises.

The initiative consolidates 11 separate support programs into a single framework spanning prevention, dispute response, and damage recovery. The ministry positions the program as end to end support that begins before technology leakage occurs and continues through litigation, damage assessment, and evidence preservation when disputes arise.

What the Program Covers in Practice

At the prevention stage, companies first undergo a security level diagnosis. Based on the results, they receive technology protection vouchers that can be used across ten eligible programs. These include technology leakage prevention system deployment, on site consulting by security experts, technology data escrow, and real time monitoring services.

Voucher support is tiered by company maturity. Early stage firms may receive up to KRW 30 million, growth stage firms up to KRW 50 million, and leading firms up to KRW 70 million.

The technology data escrow system allows firms to deposit core technologies and trade secrets with authorized institutions. In the event of disputes, the escrow record provides legal presumptive power to prove technology development. Annual usage costs are set at roughly KRW 300,000.

For firms with weak security capacity, the government covers 80 percent of the cost of building physical and technical security infrastructure. From 2026, companies must select products and services from a pre verified supplier pool, introducing a quality control layer into public security spending.

Real time monitoring and internal information leakage prevention software is also provided free of charge through the Technology Guardian Service. Standard support runs for three years, while firms holding national core technologies, including defense related technologies, may receive extended support for up to five years.

Legal, Forensic, and Financial Recovery Tools

The program places unusual emphasis on post incident recovery, an area long cited by SMEs as their weakest point.

A dedicated integrated consultation and reporting center offers free online and offline access to legal and security experts. When technology leakage is reported, cases can be linked directly to investigative agencies such as the National Police Agency, while firms receive guidance on legal advisory services, mediation, and arbitration options.

Through the legal support group, victimized firms are matched with attorneys and patent attorneys. Support periods have been expanded to a maximum of six months, with up to 80 hours of advisory time.

Damage assessment is handled by specialized institutions that calculate the economic loss caused by technology infringement. The government subsidizes 50 to 90 percent of assessment fees. When courts formally recognize a company as a victim in civil or criminal proceedings, related costs are fully covered.

Additional support includes funding for dispute mediation and arbitration, covering agent appointment fees, litigation expenses, and damage calculation costs. Digital forensics services are also provided, offering free analysis and preservation of digital evidence up to KRW 5 million per case.

To reduce litigation risk, the technology protection policy insurance covers up to KRW 50 million in domestic and overseas technology infringement lawsuits. The government subsidizes 70 to 80 percent of insurance premiums.

Why This Matters Beyond Policy Announcements

Previous government announcement measures focused heavily on penalties, institutional coordination, and legal tools to prove technology theft. This program operates at a different layer. It funds the everyday mechanisms that determine whether SMEs can actually prevent leaks, preserve evidence, and survive disputes.

By subsidizing security systems, escrow usage, forensic analysis, and legal advisory time, the government is lowering the operational cost of compliance and enforcement. This approach recognizes that deterrence alone does not protect technology if companies lack the means to act quickly when risks materialize.

The program also reflects a broader shift in how Korea frames technology protection. Rather than treating it as a reactive legal issue, the government is embedding it into business operations, similar to how cybersecurity infrastructure is handled in advanced innovation economies.

Implications for Startups, Investors, and Foreign Firms

For Korean startups and SMEs, the program reduces the gap between policy intent and execution. Firms no longer need to choose between absorbing losses quietly or pursuing costly litigation with limited evidence.

For investors, especially those active in deep tech, manufacturing, and defense adjacent sectors, the rollout signals stronger institutional support around IP risk management. The presence of subsidized forensics and damage assessment improves predictability in dispute outcomes, an often-overlooked factor in due diligence.

Foreign startups operating in Korea also face clearer expectations. Participation in security diagnostics, use of approved vendors, and engagement with formal escrow systems signal a compliance environment that is becoming more structured and auditable.

IP Protection as Economic Infrastructure

Korea’s KRW 13.4 billion technology protection rollout marks a quiet but significant shift. Intellectual property protection is no longer treated only as law, penalty, or policy declaration. It is being built as infrastructure that startups and SMEs actively use.

The effectiveness of this approach will depend on execution and uptake. Yet the direction is clear. Korea is investing in the mechanics of trust, not just the language of deterrence.

Key Takeaway on Korea’s Tech Theft Protection Program

• Korea launched a KRW 13.4B integrated technology protection program starting February 11, supporting about 2,500 SMEs.
• The program consolidates 11 initiatives covering prevention, legal response, forensics, insurance, and damage recovery.
• Security diagnostics, vouchers, escrow services, and real time monitoring form the prevention backbone.
• Legal advisory, damage assessment subsidies, digital forensics, and litigation cost support strengthen recovery.
• The rollout signals a shift from IP protection as regulation to IP protection as operational infrastructure for startups and SMEs.

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