This blog post examines why Korea’s patent system fails to match technological competitiveness and explores potential solutions.

Patent Wars: The Key to Technological Supremacy

Long ago, a protracted war raged between Samsung and Apple, two giants of the smartphone industry. The weapon they used to defeat each other was patents. This war was not merely competition between companies; it was a battle for technological supremacy in the global market, capturing worldwide attention. Both companies filed lawsuits based on hundreds of patents, which went beyond simple trademark disputes and became an opportunity to reexamine the importance of technological innovation and protection. The importance of patents revealed during this process particularly demonstrates how crucial patents are as a driving force for technological advancement.
Rapidly advancing science and technology have created an environment conducive to generating countless patents, and within this environment, massive patent disputes have become increasingly common. Now that the world has become a single community, companies must compete on the global stage beyond their home countries, and patents serve as a powerful weapon in this fierce competition. This goes beyond mere technology protection; patents act as a crucial factor determining a company’s survival and growth. Therefore, companies must hold a large number of high-quality patents to survive in the global market. These patents serve as corporate assets and proof of technological capability, closely linked to a nation’s economic strength.
In the modern era, patents are not only the core of corporate competitiveness but also vital assets at the national level. Especially today, where technology has emerged as a key factor in national competitiveness, the quality and quantity of patents form a crucial shield safeguarding a nation’s economic security. However, Korea’s patent activities cannot be considered normal relative to its economic scale. Although the technology trade balance is improving, it still remains in deficit. This signifies not merely economic loss but also that Korea’s technological capabilities are not being properly evaluated in the global market.
Having only recently established a modern state system and as a latecomer to industrialization, there may still be shortcomings in leading technology. Nevertheless, considering its position as a top-10 global economy and its world-class electronics industry, Korea’s current patent landscape feels woefully inadequate. This phenomenon reflects fundamental flaws in national patent policy and systems, demanding comprehensive reform.
The causes for this situation are likely diverse. One possible reason is a shortage of creative and enterprising talent to lead the national industry. Creativity and innovation are the core drivers of technological advancement, making education and environment creation paramount. To this end, various policies fostering creativity have been proposed, rejecting the rote learning of the past. But has Korea truly failed to produce outstanding talent? The root cause of Korea’s technological shortcomings is not a lack of talent. Rather, it is the absence of an environment where exceptional talent can fully utilize their abilities—specifically, a robust technological ecosystem, including a strong patent system.
While South Korea’s technological environment has advanced significantly, the patent system—the most crucial environmental factor that laid the foundation for modern technological development—still has a long way to go. In other words, the fundamental cause of the lack of technological competitiveness is not a shortage of talent, but an environment where patent rights are inadequately protected and a widespread misperception of intellectual property rights across the nation. This transcends being merely a problem for companies and individuals; it is an urgent challenge that must be addressed at the national level.

Low Win Rate and Insufficient Damages

A patent is a system that grants exclusive rights to the patent holder in exchange for disclosing the technology, with the aim of encouraging invention and developing national industry. In other words, the primary function of a patent is to protect the rights of the patent holder while promoting industrial development by disclosing the technology. It serves as a crucial means to stimulate technological innovation and achieve economic growth through it. Once a patent is registered, all technology except defense-related aspects is disclosed, so this function is not problematic. However, the rights of registered patent holders are not being adequately protected.
South Korea’s patent-related win rate is very low at about 30%, patent invalidation through litigation reaches 70%, and even among wins, half receive compensation of 50 million won or less. This is a very low figure even compared to foreign cases, revealing serious problems with the Korean patent system. A representative example is the patent trial ruling between Samsung and Apple mentioned above. A patent trial between the two companies also took place in Korea, where the court ordered Apple to pay Samsung 40 million won in damages, while Samsung was ordered to pay Apple 25 million won. In contrast, a recent ruling in the United States ordered Samsung to pay Apple $119 million in damages, while Apple was ordered to pay Samsung $158,000.
While the total compensation in Korea amounted to 65 million won, the U.S. compensation reached $119,158,000, equivalent to approximately 121.779 billion won. Even considering the difference in the size of the mobile phone markets between the two countries, the disparity in compensation amounts is stark. This serves as an indicator of how inadequate patent protection is in Korea, acting as a factor that weakens international competitiveness.
It is difficult to accept that large corporations with operating profits in the trillions of won face penalties of merely tens of millions of won for patent infringement. Particularly for small and medium-sized enterprises (SMEs), it is already unfair when other companies steal and use technologies they painstakingly developed; the compensation for such infringement is also absurdly low. Consequently, many SMEs reportedly choose not to register patents at all. This dampens the innovation drive of SMEs and ultimately weakens the nation’s overall technological competitiveness. Thus, the original intent of the patent system is being undermined, gradually becoming a mere formality.

Shortage of Specialized Personnel in the Patent System

Generally, determining patentability requires a fundamental understanding of the technology and specialized legal knowledge. Therefore, highly specialized experts in the relevant field are essential. However, Korea’s foundation in this area remains weak, and even the competent experts are typically affiliated with large corporations. Furthermore, existing experts face limitations. While patent attorneys exist as legal specialists in intellectual property, they lack the authority to represent clients in litigation. Attorneys with litigation authority can obtain patent attorney qualifications without any technical training. These systemic shortcomings diminish the effectiveness of patent protection.
For a more complete patent system, professionals possessing comprehensive authority and knowledge related to the patent system are needed, and a foundation must be established to enable many companies to obtain patent information. To this end, it is crucial for the government and private sector to collaborate to strengthen patent-related education and research and cultivate specialized personnel. This will not only enhance patent protection but also contribute to the qualitative improvement of national technological capabilities.

Lack of Awareness Regarding Intellectual Property Protection

Although there is a significant gap between public sentiment and court rulings recently, the law inevitably reflects public consciousness to some extent. As mentioned earlier, one reason the judiciary is so stingy with patents is the widespread misconception about intellectual property rights, including patent rights, throughout the nation. This is a deeply rooted problem across Korean society, extending beyond mere patent protection to issues of social responsibility and ethical awareness.
Cases of intellectual property infringement are very easy to find around us. For example, intellectual property infringements that ordinary people easily encounter are often related to copyright. Instances of downloading and viewing paid copyrighted works like movies, music, or dramas for free are truly easy to find around us. As such, a socially tolerant atmosphere has formed around copyright infringement, often leading citizens to fail to properly recognize its seriousness.
Many people also illegally install and use computer software protected by copyright, not patents. These illegal acts are not merely committed for personal gain; they act as factors hindering technological advancement for society as a whole. Korea followed the path of other nations’ industrial development as a model, resulting in economic growth at a speed unprecedented in world history. However, this has led to side effects throughout society, one of which is a culture of copying. This culture is a major factor hindering creativity and innovation, and it must be improved for the nation’s long-term development.
Copying others’ copyrighted works or patents has only recently begun to be recognized as a significant problem. While things have improved compared to the past, some producers still do not fully grasp the seriousness of the act, or even if they do, they intentionally imitate for profit. This goes beyond mere individual ethical issues; it is a critical problem that adversely affects the entire national economy.

Fake Patent Applications for Performance Metrics

Another side effect of rapid growth is a performance-driven mindset, which is hindering the promotion of patents in South Korea. As the importance of patents grows daily, companies want to file patent applications, and researchers excessively file fake patents to meet performance targets. This practice of numerous companies filing patents with no real substance for performance metrics is not only a waste of corporate resources but also a waste of national administrative resources. The proliferation of such fake patents hinders the discovery and protection of genuinely useful patents and undermines the credibility of the patent system.
South Korea, in particular, faces a very severe problem with these fake patents. The sheer volume of patent applications is among the highest in the world. However, the quality is extremely low because many patents are never enforced or are invalidated after litigation. This reflects structural problems within the Korean patent system, issues that cannot be resolved simply by improving the patent system itself. More fundamental changes are needed.
This phenomenon likely contributes to the low win rate and high invalidation rate. The low success rate hinders the registration of high-quality patents, perpetuating this vicious cycle. To break this cycle, the quality assessment during the patent application process must be strengthened, and institutional mechanisms to reduce fake patents must be established. Furthermore, the performance-oriented mindset of companies and research institutes needs to be improved, and policies must shift focus toward enhancing patent quality.

The problem lies not in a shortage of talent, but in inadequate patent protection

To address these issues, penalties and compensation for patent infringement must be strengthened. It is crucial to instill confidence in patent holders that their technology will be protected through patent applications. Furthermore, legal professionals specializing exclusively in intellectual property and possessing deep technical understanding are needed. This requires enhancing education and awareness about intellectual property rights and improving the legal framework for patent protection.
Furthermore, the public must be made aware of the seriousness of intellectual property and patent infringement. This is a side effect of rapid economic growth, and it is hoped that education will gradually improve the situation. At the national level, awareness of intellectual property protection must be raised, and these problems must be solved through strong penalties for patent infringement.
The problems with Korea’s patent system are not confined to its domestic market. It is absurd to expect companies or individual entrepreneurs who cannot properly utilize patents even in their own market to effectively leverage them in foreign markets. Patent laws vary slightly from country to country, and the severity of penalties for patent infringement differs significantly. Unlike in Korea, patents can be a very powerful weapon in these environments.
Companies considering the Korean patent environment before entering the global market will find themselves in a highly risky situation. Patents are not merely a means to protect corporate profits; they are crucial assets that demonstrate a nation’s technological prowess. Therefore, Korea must resolve issues related to its patent system and establish a stronger patent protection framework.
Under Korea’s current patent environment, even if exceptionally talented individuals emerge, creating high-quality patents will remain extremely difficult. Even if one strives to do their best without succumbing to the temptation to copy for results, there are obstacles that cannot be overcome by individual effort alone. These obstacles transcend mere corporate problems, becoming major factors hindering national technological advancement.
Even now, somewhere in Korea, outstanding technology might be hiding, evading the obstacles of the patent environment. Only by swiftly improving this unreasonable patent environment and public perception of patents can Korea knock on the door of technological advancement. This goes beyond mere economic gain; it is a critical task that will determine the nation’s future. Reforming the patent system is an essential step for Korea to leap forward as a global technological powerhouse. Now is the time for the government, businesses, and the public to collectively deliberate and resolve these issues.