South Korea expands espionage law to protect semiconductor technology
In brief
- South Korea's revised Criminal Act took effect September 13, expanding espionage definition beyond enemy states to any foreign country or organized entity.
- Prison sentences of three to 30 years now apply to espionage offenses, replacing a framework unchanged for over seven decades.
- South Korean police reported 33 technology leak cases in 2025, with more than half linked to China targeting the semiconductor sector.
A law for a new threat
The old framework had a narrow lane. Espionage charges required involvement of an enemy state, which in practice meant North Korea. South Korea's previous espionage law had remained unchanged for over seven decades, treating technology theft as a corporate matter, not a national security crisis.
The revised Criminal Act removes that constraint entirely. Anyone who obtains, collects, or discloses state secrets on behalf of a foreign country or organized entity now faces prosecution under espionage statutes. The revised law was passed on February 26, 2026, and legislators gave roughly six months before it went live.
Why now?
The timing is urgent. In 2025, South Korean police reported a record 33 technology leak cases, with more than half linked to China. The semiconductor sector was the primary target.
The stakes are enormous. Samsung and SK Hynix together dominate the global memory chip market, controlling vast shares of both DRAM and NAND flash production. Five former Samsung Electronics employees were indicted for allegedly transferring critical DRAM manufacturing technology to ChangXin Memory Technologies, a Chinese memory chip firm. That case exemplifies the threat.
South Korean intelligence officials have flagged concerns about technology outflows that could erode the competitive advantages of domestic firms. Chinese firms like CXMT and Yangtze Memory Technologies, known as YMTC, have been aggressively building capacity in the memory chip space. Every leak narrows Seoul's lead.
Strategic investment under threat
South Korea has outlined an $880 billion semiconductor hub plan designed to cement its position as a global chipmaking powerhouse. That investment assumes the nation can protect its technical edge. The revised espionage law is meant to ensure it can. Prosecutors now have sharper tools, longer sentences, and no requirement to prove enemy-state involvement. The question is whether deterrence will hold.
