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South Korea expands espionage law to protect chips

South Korea has expanded its espionage law to cover spying linked to any foreign country, marking a major change in how Seoul plans to protect sensitive technologies and strategic industries. The revised law came into effect on September 13 after a six-month grace period.

The move comes as South Korea faces growing pressure to protect its technology edge in areas such as semiconductors, artificial intelligence, batteries and displays. The country is home to global chip giants including Samsung Electronics and SK Hynix, making advanced semiconductor technology a particularly valuable target for industrial espionage.

The revised Criminal Act creates a new offence for espionage carried out for a foreign country or an equivalent organisation. A person convicted under the new provision faces a minimum prison sentence of three years. Existing rules covering espionage benefiting an enemy state remain in place.

The change closes a gap that had existed in South Korean law for decades. Earlier, espionage charges generally applied to activities benefiting North Korea. When sensitive technology was allegedly transferred to another country, prosecutors often had to use separate laws covering industrial technology protection, trade secrets or technology leaks.

That made it harder to treat some cases as espionage and could result in lighter penalties. South Korean officials and security experts believe the tougher framework will improve deterrence and give investigators a stronger legal route when dealing with foreign-linked technology theft.

The National Intelligence Service welcomed the amendment when it was passed, pointing specifically to the need to protect strategic technologies. Semiconductors, displays, batteries and AI were among the sectors highlighted by the agency.

The new law was passed by South Korea’s National Assembly on February 26 and formally promulgated on March 12. It then went through a six-month implementation period before taking effect on September 13.

The semiconductor industry is at the centre of the debate because South Korea has built a powerful position in the global memory-chip market. Technology developed by companies such as Samsung and SK Hynix is commercially valuable and strategically important as countries compete for leadership in advanced computing, AI and next-generation electronics.

Recent cases have also highlighted the risks. Last year, five former Samsung Electronics employees were indicted over allegations that they transferred key DRAM chip technology to Chinese memory-chip maker CXMT. The case added to concerns in Seoul about employees or former employees taking highly valuable technical knowledge overseas. Samsung and CXMT did not comment at the time.

China has not been named in the revised legislation. The law is written to apply to foreign countries generally rather than targeting a specific government. Still, the timing has drawn attention because South Korea and China are major players in the semiconductor supply chain, while Chinese companies are investing heavily to reduce their dependence on foreign chip technology.

Asked whether the legislation could be viewed as being aimed at Beijing, Chinese Foreign Ministry spokesperson Mao Ning said China expects its companies to conduct international cooperation according to international rules and laws. She also called on countries to protect normal investment and business activities and maintain a fair and non-discriminatory environment.

The new law, however, does not mean that every transfer of commercial information to another country will automatically be treated as espionage. The revised provision requires the information involved to qualify as a national secret and requires a specific connection with a foreign country or equivalent organisation. The circumstances of each case will therefore matter when prosecutors and courts decide whether the law applies.

The amendment also exists alongside South Korea’s separate industrial technology protection laws. Those rules continue to deal with the improper acquisition or disclosure of protected industrial technology and certain national core technologies. The new espionage provision therefore adds another layer to the country’s broader effort to prevent technology leakage.

South Korea’s latest move reflects a wider global shift. As semiconductor technology, AI and advanced manufacturing become closely tied to national security and economic power, governments are increasingly treating technology protection as a strategic priority rather than simply a corporate issue.

The real test for Seoul will now come through investigations and court cases. The revised law gives authorities a stronger tool against foreign-linked espionage, but its impact will depend on how effectively it is enforced and whether it can prevent valuable Korean technology from leaving the country.