South Korea Strengthens Espionage Law Amid AI and Chip Theft Concerns

• •South Korea expands espionage laws to combat AI and chip technology theft.
• •New regulations impose stricter penalties and compliance requirements for businesses.
• •The legislation aims to protect national security and sensitive industries.

On September 17, 2026, South Korea announced an expansion of its espionage laws in response to increasing risks associated with AI and semiconductor technology theft. This legislative move aims to protect sensitive industries and national security from foreign espionage, particularly from state-sponsored actors. The new law enhances penalties for espionage and introduces stricter regulations on technology transfers and foreign investments in critical sectors. Businesses in the tech and semiconductor industries are particularly affected, as they must now navigate more stringent compliance requirements. The South Korean government has emphasized the urgency of these measures given the rising geopolitical tensions and the competitive landscape in technology. Current assessments indicate that the law will significantly impact how companies manage their intellectual property and collaborate internationally.