South Korea’s revised espionage law came into force on Sunday, significantly broadening the country’s legal definition of espionage.
Previously, espionage provisions largely focused on activities benefiting an enemy state, a definition that in practice primarily referred to North Korea. That created a legal gap when sensitive industrial technology was allegedly transferred to companies or organizations connected to other foreign countries. The new provision now covers espionage conducted for any foreign country or equivalent organization, with a minimum prison sentence of three years for those convicted under the new offense. Existing provisions covering espionage for an enemy state remain in place.
The National Assembly approved the revision in February, and the law was formally promulgated in March before taking effect after a six-month grace period.
Why semiconductors are at the center of the move
The timing matters because South Korea is one of the world’s most important semiconductor manufacturing powers.
Companies including Samsung Electronics and SK hynix hold leading positions in the global memory-chip market, while South Korea is investing heavily to preserve its position as demand for advanced chips accelerates because of artificial intelligence. The country’s intelligence agency has said the revised law will strengthen protection for strategic technologies including semiconductors, displays, batteries and AI.
The concern has already appeared in high-profile cases. Reuters reported that South Korean authorities have pursued cases involving alleged transfers of semiconductor technology to Chinese companies, including a case involving former Samsung employees accused of transferring key DRAM technology to Chinese memory-chip maker CXMT.
China is an increasingly important part of the equation
The new legislation does not specifically name China, but it comes as Chinese semiconductor companies continue to strengthen their capabilities. Companies such as CXMT have been gaining ground in the DRAM market. Bloomberg reported that CXMT reached around 10% of global DRAM market share in the second quarter of 2026, while Samsung and SK hynix remained the dominant suppliers. That has intensified concerns in Seoul that the theft of proprietary technology could accelerate the technological progress of foreign competitors.
The semiconductor competition is also increasingly tied to national security. The United States has imposed extensive export restrictions on advanced chip technologies destined for China, while South Korea is trying to protect its own technological advantage.
The law targets more than major chipmakers
Technology theft is not limited to South Korea’s biggest corporations.
Smaller suppliers can be particularly vulnerable because they often lack the security resources available to Samsung and SK hynix. Bloomberg reported that more than 85% of technology-leak cases between 2020 and 2024 affected small and medium-sized businesses, citing data from a South Korean lawmaker’s office.
The revised law could therefore have implications across the wider semiconductor supply chain, not just among the country’s largest manufacturers.
A tougher law does not automatically stop technology theft
The new framework gives prosecutors stronger tools, but proving espionage can still be difficult.
Authorities must establish that the information qualifies as a protected national secret and that the activity was connected to a foreign country or organization. Experts cited by Bloomberg said that requirement could still make complex industrial-espionage cases difficult to prosecute. For South Korea, however, the direction is clear: chip technology is increasingly being treated as a national-security asset, not simply corporate intellectual property.
That distinction is becoming more important as AI increases global demand for advanced memory, processors and semiconductor manufacturing capacity.
What happens next
South Korea is tightening technology-security rules while simultaneously expanding its semiconductor infrastructure. The government has already announced a huge long-term investment strategy involving Samsung and SK hynix, aimed at expanding domestic chip production and strengthening the country’s position in AI-related semiconductor markets.
The espionage law is therefore part of a much broader strategy in which semiconductors, artificial intelligence and national security are becoming increasingly interconnected. For companies operating in South Korea’s technology sector, the message is becoming increasingly clear: protecting advanced chip technology is now a matter of national interest, not simply corporate security.
South Korea has expanded its espionage law to cover foreign countries, rather than focusing primarily on North Korea, in a major effort to protect sensitive technologies including semiconductors, displays, batteries and AI.
The revised rules took effect on September 13, as Seoul responds to growing concerns about technology leaks and intensifying competition with China in the semiconductor industry.
