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In the past, only material assents that a company owns were protected by property rights, however, these days, intangible intellectual property becomes more and more important. Since it costs a lot of expense and time to develop this kind of intangible intellectual property, some immoral firms with malice choose to steal related technologies from other companies instead of investing time and money in new technologies. The victim company whose technology has been stolen not only suffers a technical loss, but also lots of money loss and is put in danger of going bankrupt at worst. In case of major companies with various technologies and huge capital, technology leakage causes only financial losses, whereas it can finally result in bankruptcy to small and medium-sized enterprises, because mostly they run the company depending on specialized single technology they have. This is why the protection of technology is necessary for small and medium-sized enterprises. In addition, large companies are equipped with capital and human resources to protect themselves from technology leakage, while most of small and medium enterprises are not. On this account, legal support to prevent technology leakage from small and medium enterprises is urgently needed. Also, governmental support is essential because technology leakage of small and medium enterprises definitely has an effect on national competitiveness as well as enterprise itself. The importance of technology protection of small and medium enterprises has recently come to the fore as a critical social issue and National Assembly has given weight to this issue and examined it carefully. Consequently, ｢Act on Supporting Technological Protection of Small and Medium Enterprises｣ is legislated on this May and becomes effective from November. Thanks to it, legal ground for systematical support at government level has been made to protect technology of small and medium enterprises. Reviewing domestic and foreign legislations and looking into present condition of technology protection of small and medium enterprises, this study suggests improvements of legal system to prevent technology leakage of small and medium enterprises as follows. First, more organized personnel management and compensation system should be introduced to prevent technology leakage caused by professional human resources who resign or change jobs. Second, several methods are mentioned to create new value using safe technology protected by legal system that prevents small and medium enterprises from technology leakage. Third, methods are discussed to settle a dispute prior to legal action in case of technology leakage from small and medium enterprises. Furthermore, plans are reviewed to reward a third party reporter who recognizes technology leakage and notifies it to related organization. Fourth, suggestion is made to increase the penalty for technology leakage of small and medium enterprises to arouse public attention. Finally, a designated organization should be responsible for technology leakage of small and medium enterprises as well as technology data submitted to government and public institution for protection. In addition, technology certification system for small and medium enterprises should be built to check the security condition on a regular bases to prevent technology leakage in early stages and damage insurance system to support litigation expenses and other financial losses in case of technology leakage should be introduced.