On January 25, 2024, the Korean National Assembly passed amendments to the Korean Patent Act (“KPA”) and the Unfair Competition Prevention and Trade Secret Protection Act (“UCPA”), expanding the scope of punitive damages for patent infringement, trade secret infringement, and misappropriation of ideas. Effective as of August 21, 2024, punitive damages for technology misappropriation, such as patent infringement, trade secret pilferage, and misappropriation of ideas, may be assessed up to five (5) times the actual amount of damages if the violative act is determined to be willful or intentional.

Under the current KPA and UCPA, the amount of punitive damages against a willful or intentional infringer is capped at three (3) times the actual amount of damages. However, there has been criticism that such limitation of punitive damages is insufficient to deter technology misappropriation.

Addressing the criticism, the amendments to the KPA and UCPA reinforce IP protection by increasing the cap of punitive damages from three to five times, thereby enhancing the effectiveness of preventive measures and remedies against technology misappropriation.

These amendments are expected to further strengthen protection against patent infringement and trade secret misappropriation in Korea.