A Growing Problem..

Industrial espionage or corporate espionage is espionage conducted for commercial purposes instead of national security purposes.

The term is distinct from legal and ethical activities such as examining corporate publications, websites, patent filings, and the like to determine the activities of a corporation (this is normally referred to as competitive intelligence). Theoretically the difference between espionage and legal information gathering is clear. In practice, it is quite difficult to sometimes tell the difference between legal and illegal methods. Especially if one starts to consider the ethical side of information gathering, the border becomes even more blurred and elusive of definition.

Industrial espionage describes activities such as theft of trade secrets, bribery, blackmail, and technological surveillance. As well as spying on commercial organizations, governments can also be targets of commercial espionage—for example, to determine the terms of a tender for a government contract so that another tenderer can underbid.

Industrial espionage is most commonly associated with technology-heavy industries, particularly the computer and automobile sectors.

Espionage takes place in many forms. In short, the purpose of espionage is to gather knowledge about (an) organization(s). A spy may be hired, or may work for oneself.

 

 

Article - Industrial Espionage Up Amid Recession

The leakage of industry technologies is becoming a serious issue amid the economic downturn. Industrial espionage, once centered on the IT sector including phones and microchips, is now expanding to precision machinery and chemicals.

According to a report Thursday by the Samsung Economic Research Institute, 42 technology thefts were attempted last year, up 62 percent from 26 in 2004. The financial damage they would have caused is estimated at W80 trillion last year, up from W33 trillion in 2004 (US1$=W1,253).

Half of the attempted thefts between 2004 and 2008 were from Chinese companies.

The report points out that small- and medium-size companies, which accounted for 60 percent of potential victims, are vulnerable to technology leakage as they have little investment in security and poor rewards for research and development achievement.

Park Sung-bae, a senior researcher at SERI said, “As the downturn is hurting a growing number of SMEs that pursue technology innovation, their former and current employees are attempting technology theft.” He added some foreign companies attempt to get their hands on Korean technology via takeovers and joint projects.

englishnews@chosun.com