South Korea has tightened espionage rules to protect semiconductor know-how, giving Samsung and SK Hynix stronger legal protection as Chinese memory-chip makers expand.
South Korea’s revised Criminal Act took effect on 13 September 2026, expanding espionage rules to cover any foreign country or organised entity and strengthening legal protection for semiconductor manufacturing know-how.
Under the revised law, anyone who obtains, collects, or discloses state secrets on behalf of a foreign entity can face three to 30 years in prison. The previous framework largely limited espionage charges to “enemy states”, making North Korea the primary focus and leaving cases involving foreign companies to less severe trade-secret laws.
The tougher rules follow a record 33 technology-leak cases reported in 2025, with more than half linked to China. Semiconductors were the primary target. In one major case, five former Samsung Electronics employees were indicted for allegedly transferring critical DRAM manufacturing technology to Chinese memory-chip maker ChangXin Memory Technologies (CXMT).
The move is significant for South Korea’s semiconductor industry, where Samsung Electronics and SK Hynix hold major positions in global DRAM and NAND flash markets. It treats technology theft as a national-security issue, potentially bringing stronger investigative powers and enforcement resources to such cases.
The law also supports South Korea’s wider semiconductor strategy, including its planned $880 billion semiconductor hub. The National Intelligence Service has warned that technology outflows could weaken domestic chipmakers as demand for advanced memory rises.
With CXMT and Yangtze Memory Technologies expanding in China, manufacturing expertise and engineering talent could become alternative routes to closing technology gaps amid US equipment export controls. The tougher law could therefore intensify South Korea-China technology tensions while making semiconductor know-how an increasingly strategic asset.
