The ruling party and anti-trust watchdog agreed Friday to toughen measures to protect local small enterprises from larger companies' technology extortion, amid the government drive to stamp out unfair business practices.
During their policy consultation, the Democratic Party and Fair Trade Commission (FTC) decided to fix compensation for technology theft at three times the damages incurred. Currently, an aggrieved firm can demand compensation "up to" three times the damages.
They also agreed to push for the government's "preemptive" investigation into any allegations of technology misappropriation.
These moves come amid persistent reports about big companies extorting technology from their subcontractors that have little means to fend off unfair business transactions for fear of losing supply contracts.
"We will strengthen the legal framework to root out technology misappropriation and better protect subcontractors," FTC chief Kim Sang-jo said during his opening remarks.
Kim Tae-nyeon, the party's policy chief, said his party and government will seek to craft measures to strengthen state investigation procedures, which can be triggered even without companies' complaints about technology theft. (Yonhap)