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South Korea Criminal Act Targets Foreign Industrial Espionage

By Drooid · Sep 13, 2026, 2:59 PM UTC · How we work

Summary

South Korea Bans Espionage

South Korea enacted a revised Criminal Act criminalizing industrial espionage for any foreign entity, effective September 13, 2026.
The law imposes a minimum three-year prison term and allows sentences up to 30 years.
It specifically protects semiconductors, artificial intelligence, displays, and advanced batteries.
The amendment expands espionage coverage from only North Korea to any foreign state or comparable organization.

Summary

Samsung LeakLoss

The CXMT leak case cost Samsung about KRW5 trillion ($3.7 billion) in 2024 sales.
Over 85% of tech leaks from 2020-2024 targeted small-medium firms lacking strong security.
Private investigator Jang Jae-woong reports executives are hiring him over fears of employee defections.
CXMT’s DRAM market share reached 10% in Q2 2026, narrowing the gap with Samsung’s 38%.
South Korea police data show half of last year’s foreign-entity leaks involved China.

History

Historical Context

The United States passed the Economic Espionage Act in 1996, making trade-secret theft a federal crime punishable by up to ten years in prison. Building on that framework, South Korea amended its Criminal Act in 2026 to extend penalties to espionage targeting semiconductors, AI, displays and batteries. Companies such as Samsung now tighten security to meet stricter cross-border enforcement.

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South Korea Bans Espionage

South Korea enacted a revised Criminal Act criminalizing industrial espionage for any foreign entity, effective September 13, 2026.
The law imposes a minimum three-year prison term and allows sentences up to 30 years.
It specifically protects semiconductors, artificial intelligence, displays, and advanced batteries.
The amendment expands espionage coverage from only North Korea to any foreign state or comparable organization.

1 / 3