South Korea significantly broadened its espionage offence on 13 September 2026. It no longer covers only spying for an “enemy state”, but also other foreign countries or equivalent organisations. The change is intended to strengthen protection for strategic technologies including semiconductors, displays, batteries and AI.
What changes in law
New Article 98-2 of the Criminal Act criminalises acts carried out under the direction, solicitation or other contact of a foreign country or equivalent organisation. It covers discovering, collecting, disclosing, transferring or brokering national secrets, as well as assistance. The minimum sentence is three years in prison. Act No. 21450
The reform is not a blanket rule turning every leak of commercial information into espionage. Prosecutors must establish both a national secret and the relevant connection to a foreign actor. The previous wording targeted an “enemy state” and was applied mainly to North Korea. Parliament passed the amendment on 26 February, it was promulgated on 12 March and took effect after a six-month grace period. Ministry of Justice, Reuters
Why chips are central
South Korea’s intelligence service explicitly identifies semiconductors, displays, batteries and artificial intelligence as strategic technologies requiring protection. Investigators previously had to rely mainly on industrial-technology and trade-secret laws for related leaks. The new article adds a national-security route for selected cases. Reuters
For chip companies, the evidence trail therefore becomes especially important: which information qualifies as secret, who had access, and whether foreign instructions or contacts existed. Routine international cooperation does not automatically become espionage under the statutory text. Uncertain boundaries may nevertheless raise compliance costs until courts clarify the new offence.
Pandorex assessment
Relevance: 8/10. The amendment does not make every technology transfer an espionage case. It does, however, elevate particularly serious foreign-linked cases from economic offences to national-security crimes, carrying at least three years in prison.
Deterrence will now depend on how narrowly authorities and courts interpret “national secrets” and the required foreign connection. Technical access controls, logging and clear information classification remain essential for companies; criminal law intervenes only after an incident.