The government and the ruling Democratic Party have decided to enhance regulations and punishment on conglomerates extorting technologies from small firms.

The Democratic Party's chief policymaker Kim Tae-nyeon said that the ruling camp made the decision during a meeting on Monday at the National Assembly.

The plan requires conglomerates to sign confidentiality agreements with small firms when they do business. 

They will also ban large companies from asking for technology-related materials from small firms.

Punitive, or exemplary, damages will be introduced for technology extortion cases so that a plaintiff can receive compensation ten times the amount of actual damages.