South Korea has updated its legislation to combat industrial espionage, reclassifying the unauthorized transfer of sensitive technologies to any foreign entity as a threat to national security. Violators now face prison sentences of up to 30 years.
The legislative changes address gaps in previous laws that primarily focused on activities benefiting North Korea. Authorities now target technology leaks to any foreign state or organization, with statistics indicating that over half of such cases in the previous year involved China.
The government is prioritizing the protection of its semiconductor industry, which is central to the national GDP. The country has committed to investing up to $880 billion in the development of its domestic chip sector to maintain its global leadership.
In 2024, ten former Samsung engineers were charged with leaking 18-nm DRAM manufacturing secrets to the Chinese company CXMT, causing an estimated damage of $3.7 billion. CXMT currently holds a 10% share of the global DRAM market.
Data shows that between 2020 and 2024, more than 85% of technology leaks originated from small and medium-sized contractors. To secure convictions under the new laws, prosecutors must prove that the stolen information was intended for a foreign state.
