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South Korea plugs chip spying loophole

South Korea has widened its espionage laws to cover foreign powers as Seoul tries to stop its prized chip technology from wandering abroad.

According to Reuters, the expanded law took effect on 13 September and broadens espionage offences beyond acts benefiting North Korea to those carried out for any foreign country or equivalent organisation.

South Korea’s National Assembly passed the revised Criminal Act on 26 February after years of complaints that existing legislation was hopelessly inadequate for technology and industrial espionage involving countries other than North Korea.

The amendment creates a new offence of spying for a foreign country or equivalent organisation, carrying a minimum prison sentence of three years. Existing provisions covering espionage benefiting an “enemy state” remain in place.

Previously, prosecutors could bring espionage charges only when an act benefited North Korea. Cases involving other foreign governments or companies had to be squeezed through industrial technology or trade-secret laws instead.

South Korea’s National Intelligence Service welcomed the amendment when it passed, saying the change would make it easier to prevent strategic technologies involving semiconductors, displays, batteries and AI from leaking overseas. Legal and security experts said the legislation closes a longstanding loophole which could leave advanced technology theft facing lighter penalties than conventional espionage. The law was promulgated on 12 March and entered into force after a six-month grace period.

Seoul has good reason to be twitchy about its semiconductor crown jewels. Five former Samsung Electronics employees were indicted in 2025 over accusations that they transferred key dynamic random-access memory technology to Chinese memory maker CXMT.

The revised legislation does not name China, although Beijing was asked whether it considered itself the intended target. Chinese foreign ministry spokesperson Mao Ning said China requires its companies to conduct international cooperation in accordance with international rules and laws.

“At the same time, to this end, we believe that all countries should safeguard the normal investment and business activities of enterprises and provide a fair, just, and non-discriminatory business environment,” Mao said.

 

TOPICS:
china  ·  chip technology  ·  cxmt  ·  DRAM  ·  espionage  ·  industrial espionage  ·  Samsung Electronics  ·  semiconductors  ·  South Korea

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