South Korea expands espionage law to protect chip technology

Investing.com -- South Korea’s expanded espionage law took effect on Sunday, broadening criminal offences beyond acts benefiting North Korea as Seoul seeks stronger protections against leaks of semiconductor and other strategic technologies, Reuters reported.

The revised Criminal Act creates an offence covering espionage conducted for any foreign country or equivalent organisation, carrying a minimum prison sentence of three years. Existing provisions covering espionage benefiting an "enemy state" remain in force.

South Korea’s National Assembly passed the amendment on February 26 after criticism that existing legislation made it difficult to prosecute industrial and technology espionage involving countries other than North Korea.

Under the previous framework, espionage charges generally applied to activities benefiting Pyongyang. Prosecutors handling cases involving other foreign governments or companies often had to rely instead on industrial technology or trade-secret legislation, which could carry lighter penalties.

The National Intelligence Service has backed the change, saying it strengthens the country’s ability to prevent leaks involving strategic technologies such as semiconductors, displays, batteries and artificial intelligence.

The legislation comes amid heightened concern over the loss of advanced chip technology. Five former Samsung Electronics employees were indicted last year over accusations that they transferred key dynamic random-access memory, or DRAM, technology to Chinese memory-chip maker CXMT. Samsung and CXMT did not comment at the time.

The amendment does not identify specific countries. Asked whether it could be viewed as targeting China, Chinese Foreign Ministry spokesperson Mao Ning said Beijing requires its companies to conduct international cooperation in accordance with laws and international rules.

Mao also called on countries to protect normal investment and business activity and provide companies with a fair and non-discriminatory operating environment.

The revised law was promulgated on March 12 and entered into force on September 13 following a six-month grace period.