Victim companies weep tears, but the government fattens its belly

The government is criticized for its negligence in compensating small and medium-sized enterprises (SMEs) that fall victim to technology theft, despite collecting hundreds of billions of won annually in unfair trade surcharges. Jang Tae-kwan, chairman of the foundation Gyeongcheong, argues that these funds, which often stem from the suffering of victimized companies, are not being used to help them, leading to accusations that the state is profiting while these businesses collapse.

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The government, while considering the technology theft damage of SMEs as serious, is very negligent in the relief of victim companies that have suffered fatal blows.

Jang recalls a meeting ten years ago with the Fair Trade Commission where he stressed the importance of victim relief, suggesting that unfair trade surcharges be used to support companies that have lost their hard-developed technology. While the commission seemed to agree, nothing has changed. The surcharges are still fully absorbed into state revenue, and the plight of victimized companies remains ignored. Jang has repeatedly proposed the necessity of a victim relief fund utilizing these surcharges, even drafting legislation multiple times, but has been met with the "wall of the Ministry of Economy and Finance."

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The state alone is getting richer, as victim companies are collapsing miserably.

Despite recent efforts by the Minister of SMEs and Startups to address technology theft, including several meetings where Jang reiterated the need for victim relief, no tangible improvements are visible. The recurring excuse is the Ministry of Economy and Finance's resistance. Jang questions whether this is due to organizational self-interest or bureaucratic inertia, expressing frustration at the rejection of such a common-sense proposal.

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The wall of the Ministry of Economy and Finance.

While acknowledging the importance of preventing technology theft and punishing perpetrators, Jang emphasizes that supporting victimized companies so they can endure and fight back should be the priority. He dismisses the notion that the proposed Korean-style discovery system (K-discovery) will be a panacea, as many SMEs lack the resources to afford such legal processes. Therefore, he strongly advocates for a victim relief fund, funded by surcharges, to provide a crucial buffer for these companies. He believes that the surcharges, being a product of the victims' pain, should grant them priority rights.

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Is it organizational self-interest or the '꼰대력' (arrogance) of old-fashioned bureaucrats that is pushing away the extremely common-sense proposal to use part of the surcharges, which are the tears of victim companies, for victim relief?