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.