South Korean Government Introduces Trade Secret Certification After Startup Program Data Breach The South Korean Ministry of SMEs and Startups announced on June 22 that it will offer trade secret original certification services to applicants of its "Startup for All" program following a significant data breach. The measure aims to protect the intellectual property of participants after a security vulnerability exposed sensitive information. First Vice Minister Roh Yong-seok publicly apologized for the incident, which affected 5,000 applicants who had passed the first round of the government-backed startup incubation program. The breach occurred when an AI solutions company participating in the program exploited a flaw in the project’s website, accessing applicants’ email addresses, startup idea summaries, and judges’ evaluation comments. The "Startup for All" program, launched earlier this year, is an audition-style initiative designed to support emerging businesses. Of the 63,000 initial applicants, 5,000 advanced to the first round, with 1,000 progressing to further stages. The final 100 competitors will vie for up to 1 billion won (US$654,500) in government support. In response, the ministry pledged to conduct external investigations and security audits to prevent future breaches. The trade secret original certification a legal tool verifying ownership of confidential business information will help applicants establish proof of their ideas in case of disputes.

South Korea Proposes Hefty Fines for Major Data Breaches South Korea is considering imposing fines of up to 10% of annual revenue on companies that suffer significant data breaches, as part of stricter cybersecurity regulations. The proposed measures aim to hold organizations accountable for failing to protect sensitive information, reflecting growing concerns over escalating cyber threats. The move follows a series of high-profile breaches in recent years, including attacks on government agencies and private firms. If enacted, the penalties would apply to businesses handling large volumes of personal or financial data, aligning with global trends toward stronger data protection enforcement. The proposal is currently under review, with potential implementation expected in the coming months. The stricter penalties underscore South Korea’s push to enhance cybersecurity resilience amid rising digital risks.