South Korea's expanded espionage law takes effect amid push to protect chip technology

South Korea's expanded espionage law takes effect on Sunday, broadening espionage offences beyond acts involving North Korea to include all foreign countries as Seoul seeks to protect key technologies amid intensifying competition in semiconductors and other strategic industries.

Here are more details:

• The National Assembly passed the revised Criminal Act on 26 February after years of criticism that existing laws were ill-suited to punish technology and industrial espionage involving non-North Korean actors.

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

• Under the previous law, espionage charges generally applied only to acts benefiting North Korea, forcing prosecutors in many cases involving foreign governments or companies to rely on other industrial technology or trade-secret laws.

• The National Intelligence Service welcomed the amendment when it was passed, saying it would strengthen South Korea's ability to prevent leaks of strategic technologies such as semiconductors, displays, batteries and AI.

• Legal and security experts cited the change as closing a longstanding loophole that often left advanced industrial technology leak cases subject to lighter penalties, with supporters arguing it will strengthen deterrence against industrial espionage.

• The amendment was promulgated on 12 March and takes effect after a six-month grace period on 13 September.

• The change follows high-profile technology leak cases, including the indictment last year of five former Samsung Electronics employees accused of transferring key dynamic random-access memory (DRAM) chip technology to Chinese memory maker CXMT. Samsung and CXMT did not comment at the time.

• Asked whether the law, which does not specify any country, could be seen as targeting Beijing, Chinese foreign ministry spokesperson Mao Ning said China requires its enterprises 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 told a regular news briefing on Friday.