Regular SW also subject to report, depending on how encrypted

Exposed to crackdown due to lack of system awareness and response abilities

Imprisonment of up to 7 years and fines of up to 5 times the amount of exports

Need to strengthen public relations and support channels by relevant ministries

 

Reporter, Kim Ji-sun

A small and medium-sized software (SW) company received notification from the police that the products exported to Japan last month were strategic material and should be investigated. This company was not aware that the export was a strategic material. They belatedly learned that they did not report strategic materials on exports to other regions outside Japan. They rushed to mobilize the legal team, but they had already broken the law.

The Strategic Material Management System was implemented through the Wassenaar Agreement in 1996 to prevent the export of industrial materials that can be used to manufacture conventional weapons to trouble spot and terrorist countries. South Korea also designates and manages strategic materials to implement the agreement.

SW was also included in strategic material management items. However, it is limited to SW to which encryption technology is applied. If the product contains encryption-related protocols and algorithms designated by the strategic item, the exporter must report to the government before exporting. Violations such as exporting strategic materials without reporting them will result in up to seven years in prison or a fine of five times the export price.

Korea IT News : https://www.etnews.com/20210526000192