 
  WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  IP/N/1/KOR/U/2 
29 April 2004 
 (04-1910) 
Council for Trade-Related Aspects of 
Intellectual Property Rights Original:   English/ 
 anglais/  inglés 
 
MAIN DEDICATED INTELLECTUAL PROPERTY 
LAWS AND REGULATIONS NOTIFIED UNDER 
ARTICLE 63.2 OF THE AGREEMENT 
 
REPUBLIC OF KOREA 
 
 The present document reproduces the text
1 of the Unfair Competition Prevention and Trade 
Secret Protection Law as amended by Law No. 642 1 of 3 February 2001 (entered into force 
on 1 July 2001), notified by Korea under Article 63.2 of the Agreement in a communication from its 
Delegation dated 5 November 2001.   
 
 Conseil des aspects des droits de propriété 
intellectuelle qui touchent au commerce  
  
PRINCIPALES LOIS ET RÉGLEMENTATIONS CONSACRÉES À LA 
PROPRIÉTÉ INTELLECTUELLE NOTIFIÉES AU TITRE 
DE L'ARTICLE 63:2 DE L'ACCORD 
 
RÉPUBLIQUE DE CORÉE 
  Le présent document contient le texte
1 de la Loi sur la prévention de la concurrence déloyale 
et la protection des secrets de fabrique, modifiée par la Loi n° 6421 du 3 février 2001 (entrée en vigueur le 1
er juillet 2001), qui a été notifiée par la Corée au titre de l'article 63:2 de l'Accord dans une 
communication de sa délégation datée du 5 novembre 2001.    
 
Consejo de los Aspectos de los Derechos de Propiedad 
Intelectual relacionados con el Comercio  
  
PRINCIPALES LEYES Y REGLAMENTOS DEDICADOS A LA 
PROPIEDAD INTELECTUAL NOTIFICADOS EN VIRTUD 
DEL PÁRRAFO 2 DEL ARTÍCULO 63 DEL ACUERDO 
 
REPÚBLICA DE COREA 
 
 En el presente documento se reproduce el texto
1 de la Ley de Prevención de la Competencia 
Desleal y Protección del Secreto Comercial, modifica da por la Ley Nº 6421 de  3 de febrero de 2001 
(que entró en vigor el 1º de julio de 2001), que Co rea notificó en virtud del párrafo 2 del artículo 63 
del Acuerdo en una comunicación de su Dele gación de fecha 5 de noviembre de 2001. 
                                                      
 1 In English only./En anglais seulement./En inglés solamente. IP/N/1/KOR/U/2 
Page 2  
 
  
 
 
 UNFAIR COMPETITION PREVENTION   AND TRADE SECRET PROTECTION LAW    IP/N/1/KOR/U/2 
 Page 3 
 
 
 CHAPTER I 
GENERAL PROVISIONS 
 
Article 1 【Purpose 】 
 
The purpose of this Law is to maintain orderl y trade by preventing acts of unfair competition 
such as improper use of domestically well -known trademarks and trade names, and by 
preventing infringement of trade secrets.  
 
Article 2 【Definitions 】 
 
The definitions of terms used in this Law shall be as follows:  
 (1) “Acts of unfair competition” shall mean any of the following acts regardless of its 
intention:   (
ⅰ) an act of causing confusion with another person's goods by using signs identical or 
similar to another person's name, trade name , trademark, container or  package of goods or 
any other sign which is widely known in Korea as an indication of goods, or by selling, distributing, importing or exporti ng the goods with such signs;  
 (
ⅱ) an act of causing confusion with another pe rson's commercial facilities or activities by 
using signs identical or similar to another person's name, trade name, emblem or any other sign which is widely known in Korea as an indication of commerce;   (
ⅲ) In addition to the act of causing confusion provided in subparagraph ( ⅰ) or ( ⅱ), an act of 
doing damage to distinctiveness or reputation at tached to another person’s sign by using the 
sign identical or similar to another person' s name, trade name, trademark, container or 
package of goods, or any other sign which is widely known in Korea as an indication of 
goods or commerce, or by selli ng, distributing, importing or expor ting goods with such signs,  
without due cause as prescribed by Presiden tial Decree for instance noncommercial use;  
 (
ⅳ) an act of causing confusion about the source of origin by falsely marking the source of 
origin on the goods or in any advertisement,  on the trade documents communicated to the 
public or in communications, or by selling, distributing, importing or exporting the goods 
marked with such a source of origin;   (
ⅴ) an act of making a mark on goods, advertis ements, trade documents communicated to the 
public or in communications, or selling, dist ributing, importing or exporting goods marked 
with such mark which would mislead the pub lic into believing that the place of production, 
manufacture, or processing is different from  the actual place of pr oduction, manufacture or 
processing;   (
ⅵ)  an act of falsely assuming another person 's goods, or an act of making a mark or 
advertising in at information useful for busin ess activities which are not publicly known, has IP/N/1/KOR/U/2 
Page 4  
 
 independent economic value, and has been ma intained and managed as secrets through 
considerable efforts; or   (
ⅶ) an act of using a trad emark that is identical or similar to a trademark registered in any 
Contracting State to the Paris Convention for the Protection of Industrial Property 
(hereinafter referred to as the "Paris Convention") or Contrac ting State to the Trademark Law 
Treaty by a person who is or was an agent or a representative of the owner of the trademark, 
within one year prior to the date on which such act was carried out , selling, distributing, 
importing or exporting the goods with such marks without due cause.  
 (3) "Infringement of trade secrets" shall mean any of the followings:  
 (
ⅰ) acquiring trade secrets by theft, deception, coercion or other improper means (hereinafter 
referred to as "an act of improper acquisition" ), or subsequently using or disclosing the 
improperly acquired trade secrets (including informing any specifi c person of the trade secret 
while under a duty to maintain secrecy; hereinafter, the same shall apply);  
 (
ⅱ) acquiring trade secrets or using or disc losing the trade secrets so acquired with 
knowledge that an act of improper acquisition has occurred in connection with the trade 
secrets or lack of such knowledge by gross negligence;   (
ⅲ) after acquiring trade secrets,  using or disclosing the tr ade secrets so acquired with 
knowledge that an act of improper acquisition has occurred in connection with the trade 
secrets or lack of such knowledge by gross negligence;   (
ⅳ) using or disclosing trade secrets for the pu rpose of obtaining improper benefits or to 
damage the owner of the trade secrets while un der a contractual or ot her duty to maintain 
secrecy of the trade secrets;   (
ⅴ) acquiring trade secrets, or using or disc losing the trade secrets so acquired with 
knowledge that the trade secrets have been disc losed in the manner provi ded in subparagraph 
(ⅳ) above or such disclosure has occurred in conn ection with the trade secr ets or lack of such 
knowledge by gross negligence;   (
ⅵ) after acquiring trade secrets,  using or disclosing the tr ade secrets so acquired with 
knowledge that the trade secret s were disclosed in the manner provided in subparagraph ( ⅳ) 
above or such disclosure has occurred in conne ction with the trade secr ets or lack of such 
knowledge by gross negligence.     
  IP/N/1/KOR/U/2 
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 CHAPTER Ⅱ 
PROHIBITION OF UNFAIR  COMPETITIVE ACTS 
 
Article 3 【Prohibition of Use of National Flags and National Emblems, etc. 】 
 (1) No person shall use as a trademark a symbol  which is identical with or similar to the 
national flag, emblem or other insignia of any Contracting St ate to the Paris Convention, a 
member of the World Trade Organization, or C ontracting State to the Trademark Law Treaty, 
a mark of an international organization unles s authorized by the State or international 
organization concerned.   (2) No person shall use as a trademark a symbol  which is identical with or similar to any 
indication of inspection or certif ication of the government of any Contracting State to the 
Paris Convention, a member of the World Trad e Organization or Cont racting State to the 
Trademark Law Treaty unless authorized by the government of the State concerned.  
 
Article 4 【Injunction Against Acts of Unfair Competition 】 
 (1) A person who that his business interest is  injured or threatened by an act of unfair 
competition may seek a court injunction or preventive order against a person who engages in the act of unfair competition.   (2) A person who deems that his business interest  is injured or threatened by an act of unfair 
competition may additionally demand the destruction of the goods that were involved in the act of unfair competition, removal of facilities used during such act, or other measures 
necessary to prohibit or  prevent such act.  
 
Article 5 【Liability for Compensation of Damages from Acts of Unfair Competition 】 
 Any person who has intentionally or negligentl y caused damage to another person's business 
interest, shall be liable for compensation of damages. However, in the case provided for 
under 2(1)(
ⅲ), this provision shall apply only to the intentional act of unfair competition  
 
Article 6 【Restoration of Reputation Harmed by Act of Unfair Competition 】 
 With respect to a person whose business inte rest is injured by an act of unfair competition, 
the court may order the person who, intentionally or negligen tly, caused damages to the 
business reputation by an act of unfair competiti on to take necessary m easures to restore the 
business reputation of the owner in lieu of or in addition to compensation for damages provided under Article 5. However, in the case provided for under 2(1)(
ⅲ), this provision 
shall apply only to the intentional act of unfair competition   IP/N/1/KOR/U/2 
Page 6  
 
 Article 7 【Investigation of Unfair Competitive Acts, etc. 】 
 (1) If the Commissioner of the Korean Indus trial Property Office deems it necessary to 
confirm an act of unfair competition or to conf irm a violation of Article 3, he/she may have 
public officials enter business or manufacturing facilities and examine related documents or books, products, etc. or collect the least amo unt of products nece ssary for testing and 
inspecting them.   (2) Any public official who conducts an examina tion under paragraph (1) of  this Article shall 
present a certificate indi cating his competence to relevant persons.  
 
Article 8 【Corrective Recommendation to Violations 】 
 If the Commissioner of the Korean Industrial Property Office deems that an act of unfair 
competition as defined under Article 2(1), or an act which is in violation of Article 3, has 
been committed by a person, he may issue a corrective recommendation to the person to 
cease such act or to remove or destroy the mark used in such  act within a specific period 
which shall not exceed thirty days.  
 
Article 9 【Hearing 】 
 If the Commissioner of the Korean Industrial Property Office deems that it is necessary to 
issue a corrective recommendation provided under Ar ticle 8, he shall hear the position of the 
party concerned, interested person or witness in  accordance with the procedure prescribed by 
Presidential Decree.  
 
 
CHAPTER Ⅲ 
PROTECTION OF TRADE SECRETS 
 
Article 10 【Injunction Against Infringement of Trade Secrets, etc. 】 
 (1) A person who possesses trade secrets may s eek a court prohibition or preventive order 
against a person who engages in infringement or is  likely to engage in infringement of trade 
secrets, if the business interest of the pers on who possesses trade secrets is damaged or is 
likely to be damaged thereby.   (2) If the person who possesses tr ade secrets files a claim pursu ant to Paragraph (1), such 
person may request the destructi on of the goods that were used in the infringement, removal 
of the facilities used in the infringement or any other measures necessary to prohibit or prevent the act of infringement.     IP/N/1/KOR/U/2 
 Page 7 
 
 
 Article 11 【Compensation of Damages for Infringement of Trade Secrets 】 
 Any person who has caused damage to a pe rson who possesses trade secrets through an 
intentional or negligent infringement of trade secrets shall be liable for compensation for the 
damages.  
 
Article 12 【Restoration of Reputation of th e Person Possessing Trade Secrets 】 
 With respect to a person who has caused a pe rson possessing trade secr ets to lose business 
reputation through an intentional or negligent infringement of trade secrets, the person 
possessing the trade secrets may request the cour t for necessary measures for the restoration 
of the business reputation, in li eu of or in addition to comp ensation for damages under Article 
11.  
 
Article 13 【Exception for Bona-Fide Persons 】 
 (1) Articles 10 and 11 shall not apply to an act  by a person who has pr operly acquired trade 
secrets through a transaction or uses or discloses th e trade secrets within the scope of the 
rights he has properly acquired through such transaction.  
 (2) "The person who has properly acquired trade s ecrets" in Paragraph (1) above shall mean a 
person who has acquired the trad e secrets without knowledge a nd without gross negligence 
that such trade secrets were improperly disclose d or that an act of improper acquisition or of 
improper disclosure has occurred in connecti on with the trade secrets at the time of 
acquisition under Article 2(3), (
ⅲ) and ( ⅵ).  
 
Article 14 【Statute of Limitations 】 
 In case the infringement of trade secrets cont inues, the right to request the prohibition or 
prevention of the infringement of trade secret s pursuant to the provis ions of Article 10 (1) 
shall expire unless such right is  exercised within one year fro m the date of actual knowledge 
that the business interest of the person possessing the trade secrets was damaged or 
threatened to be damaged by an infringi ng person and of the actual knowledge of the 
infringing person's identity. The same shall appl y if three years has elapsed from the date 
when the act of infringement first occurred.  
 
 
 
 
 IP/N/1/KOR/U/2 
Page 8  
 
 CHAPTER Ⅳ 
SUPPLEMENTARY PROVISIONS 
 
Article 14bis 【Presumption, etc., on Amount of Damage 】 
 (1) Where a person whose business interests have been infringed by an act of unfair 
competition or infringement of trade secrets claims compensation for damages under Article 
5 or Article 11, damages may be calculated as the transferred amount multiplied by the 
presumed profit per unit that the person whose business interests have been infringed might 
have obtained in the absence of infringeme nt during the period in which the infringer 
transferred the infringing pr oduct.  Provided that, said co mpensation may not exceed an 
amount calculated as follows: the estimated profit per unit multiplied by the number of articles that the trad emark right owner or licensee coul d have produced subtracted by the 
number of units actually sold.   However, where a person whose business interests have been 
infringed was unable to sell his or her product for reasons other than unfair competition or 
trade secret infringement, a sum calculated accordi ng to the number of articles subject to said 
reasons shall be deducted.  (2) Where a person whose business interests have been infringed by an act of unfair 
competition or infringement of trade secrets,  claims compensation for damages under Article 
5 or Article 11, the profits gained  by the infringer th rough such act of infringement shall be 
presumed to be the amount of damages suffe red by the person whose bus iness interests were 
infringed.   (3) Where a person whose business interests have been infringed by an act of unfair 
competition or infringement of trade secrets,  claims compensation for damages under Article 
5 or Article 11, he may claim the amount of money which he would normally be entitled to 
receive for the use of a mark applied to goods  which was the object of the act of unfair 
competition or for the use of trade secrets which was the object of the act of unfair 
competition or for the use of trade secrets which was the object of the infringement as the amount of damages suffered by him.   (4) Where the amount of actual damages, wh ich were suffered from the act of unfair 
competition or infringement of trade secrets, ex ceeds the amount referred to in paragraph (3) 
of this Article, the amount in excess may also  be claimed as compensation for damage. In 
such a case, the court may take into consider ation whether there has been either willingness 
or gross negligence on the part of the person who has infringed  on such business interests in 
determining the amount of compensation for damages.   (5) In litigation relating to an act of unfair comp etition or infringement of trade secrets, where 
the court recognizes that the nature of the facts of th e case make it difficult to provide 
evidence proving the amount of damage that has occurred, notwithstanding paragraphs (1) to  IP/N/1/KOR/U/2 
 Page 9 
 
 
 (4), the court may determine a reasonable am ount on the basis of an examination of the 
evidence and a review of all the arguments.  
 
Article 14ter 【Submission of Materials 】 
 In litigation relating to the infringement of business interests through an act of unfair 
competition or infringement of trade secrets, the court may, upon the request of either party, 
order the other party to submit materials necessa ry for the assessment of damages caused by 
the infringement. However, this provision sh all not apply when the person possessing the 
materials has a justifiable reason for refusing to submit them  
 
Article 15 【Relationship with other Laws 】 
 (1) If any provision of Articles 2 to 6 and Article  18(3) is inconsistent with the provisions of 
the Patent Law, Utility Model Law, Industrial Design Law, Trademark Law, the provisions of 
the Unfair Competition Prevention and Trade Se crets Protection Law shall not be applied.  
 (2) If any provisions of Article 2(1)( ⅳ) to ( ⅵ) ,  A r t i c l e s  3  t o  6 ,  and Article 18(3) is 
inconsistent with the provisi ons of the Monopoly Regulati on and Fair Trade Law, or 
Criminal Law relating to national flags and national emblems, the provisions of Unfair 
Competition Prevention and Trade Secrets Protection Law shall not be applied.  
 
Article 16 Deleted 
 
Article 17 【Delegation of Authority 】 
 The authority of the Commissioner of the Kor ean Industrial Property Office provided under 
the Unfair Competition Prevention Law may be part ly delegated to the Mayor of the City of 
Seoul, Mayors of the Metropolitan cities or the Governors of the Provinces in accordance with the provisions prescribed by Presidential Decree.  
 
Article 18 【Penal Provision 】 
 (1) A person falling under any of the following provisions shall be liable to imprisonment with labor not exceeding seven years or to a fine not exceeding 100 million Won:  
 1. A person who, as an employee or officer of  a company, uses in a foreign country or 
discloses to a third person knowi ng that this will be used in the foreign country, trade secrets 
regarding useful technology of the comp any without any justifiable reason.  
 2. A person who was as an employee or officer of  a company and uses in a foreign country or 
discloses to a third person knowi ng that this will be used in the foreign country, trade secrets 
regarding useful technology of the company for the purpose of gaining improper benefits or 
causing damage to the company in violation of th e obligation to maintain secrecy of the trade 
secrets under a contractual or other duty.  IP/N/1/KOR/U/2 
Page 10  
 
 (2) A person falling under any of the following provisions shall be liable to imprisonment 
with labor not exceeding five years or to a fine not exceeding 50 million Won:   1. A person who, as an employee or officer of a company, discloses trade secrets regarding 
useful technology of the company to a thir d person without any justifiable reason.  
 2. A person who was an employee or officer of a company and discloses trade secrets 
regarding useful technology of the company to a third person for the purpose of gaining 
improper benefits or causing damage to the company in violation of the obligation to 
maintain secrecy of the trade secret s under a contractual or other duty.  
 (3) A person falling under any of the following provisions shall be liable to imprisonment with labor not exceeding three years or to a fine not exceeding 30 million Won:   
(
ⅰ) A person who engages in an act of unf air competition provided under Article 2(1).  
(ⅱ) A person who uses as a trademark a symbol th at is identical or similar to the insignia or 
indication of the following in  violation of Article 3.  
 1. The national flag, national em blem or other insignia of any Contracting State to the Paris 
Convention or a member of the World Trade Organization.   2. An indication of an In ternational Organization.  
 3. An indication of inspection or certifica tion of any Contractin g State to the Paris 
Convention, a member of the World Trade Orga nization or an indication of inspection or 
certification to Trademark Law Treaty.   (4) The punishments of imprisonment and fine as re ferred to in paragraphs (1) and (2) of this 
Article may be imposed concurrently.   (5) Prosecution for the crimes under paragraphs (1 ) and (2) of this Artic le shall be made only 
if the damaged person files a complaint, except when it is necessary for national security and important public welfare.  
 
Article 19 【Dual Liability 】 
 If a representative of a legal person or an agen t, employee or any other employees of a legal 
or natural person commits a violation that fa lls under Article 18(3) in connection with the 
business of the legal or natural person, the pe nalty for fines under such subparagraphs shall 
be imposed on the legal or natural pe rson, in addition to the violator.  
 
 
   IP/N/1/KOR/U/2 
 Page 11 
 
 
 Article 20 【Administrative Fine 】 
 (1) A person who refuses, interferes with or ev ades investigation on th e collection of products 
by a public official concerned under Article 7(1), shall be subject to an administrative fine not 
exceeding 20 million Won.    (2) The administrative fine referred to in para graph (1) of this Article  shall be imposed and 
collected by the Commissioner of the Korean Industrial Property Office as prescribed by the Presidential Decree.   (3) Any person who objects to the imposition of an administrative fine under paragraph (2) of 
this Article may lodge a protes t to the Commissioner of the Kor ean Industrial Property Office 
within thirty days from the date  of notification of the imposition.  
 (4) The Commissioner of the Korean Industria l Property Office shall, upon receipt of a 
protest under paragraph (3) of this Article, no tify a competent court without delay, which 
shall then adjudicate the case of the administra tive fine according to the provisions of the Act 
on Non-Contentious Procedures.   (5) Where no objection has been raised within th e period prescribed in paragraph (3) of this 
Article and where the fine has not been pai d, the Commissioner of the Korean Industrial 
Property Office shall collect it in accordance wi th the rules concerning collection of national 
taxes in arrears through the head of the competent tax office.  
 
 
ADDENDUM 
 
Article 1 【Date of Entry into Force 】 
 This Law shall be effective from July 1. 2001  
 
Article 2 【Exception on Penal Provisions 】 
 Notwithstanding Article 18(3), a person who engages in an act of unfair competition provided under Articles 2(1)(
ⅲ) and ( Ⅶ) shall not be subj ect to the punishment under Article 18(3) 
until December 31, 2001.   
__________ 
   
 