YOON&YANG

On February 26, 2026, the National Assembly approved an amendment to the Criminal Act that broadens the scope of espionage offenses to cover activities involving “foreign entities or organizations equivalent thereto.” This newsletter outlines the key features of the amended law, which will take effect on September 13, 2026, and highlights important considerations for foreign-invested companies and businesses engaged in cross-border operations during the six-month grace period.

1. Key Features of the Amendment 

2. Risk Assessment Following the Amendment: Scope and Boundaries of “State Secrets”

3. Practical Response Strategies: Recalibrating Global Information-Sharing Protocols

4. Conclusion

1. Key Features of the Amendment

The recent amendment to the Criminal Act introduces several notable changes:

✓ Introduction of Espionage for Foreign Entities (Article 98-2): The scope of espionage offenses, previously limited to acts involving an “enemy state,” has been expanded to include “foreign states and foreign organizations.” Any person who, under the direction of such foreign entities, collects or discloses state secrets will be subject to imprisonment for a term of at least three years.

✓ Exclusion for Allied Countries (Article 104): In consideration of information sharing practices and security cooperation with friendly nations, activities involving allied countries are excluded from the scope of the amended provisions.

2. Risk Assessment Following the Amendment: Scope and Boundaries of “State Secrets”

The term “state secrets,” which forms the basis of espionage offenses, is not expressly defined in the statute and is therefore expected to be shaped largely through judicial interpretation. The Supreme Court has previously held, in the context of the National Security Act, that “state secrets” refer to information that is not publicly known or widely accessible within the country and that carries substantive value warranting protection as confidential information, particularly where its disclosure could pose a risk to national security (Supreme Court Decision 97Do985, en banc, September 16, 1997).

Building on this precedent, the concept of “state secrets” under the Criminal Act may be interpreted broadly to include: (i) national strategic technologies under the National High-Tech Strategic Industries Act; (ii) industrial technologies, such as national core technologies and advanced technologies under the Industrial Technology Protection Act; and (iii) trade secrets protected under the Unfair Competition Prevention Act. However, given the requirement of “substantive value,” it is likely that only information of a level of importance comparable to national strategic or core industrial technologies would fall within the scope of “state secrets” for purposes of the offense.

As the applicable legal requirements and protected legal interests under the Criminal Act, the National High-Tech Strategic Industries Act, the Industrial Technology Protection Act, and the Unfair Competition Prevention Act are closely intertwined, companies are advised to proactively classify the legal nature of the information they handle and to establish robust internal control systems, supported by integrated legal advice spanning intellectual property, criminal law, and compliance.

3. Practical Response Strategies: Recalibrating Global Information-Sharing Protocols

In connection with the amendment, the National Intelligence Service has announced that it will treat unauthorized disclosures of sensitive information as serious espionage offenses directly linked to national security and will strengthen cross-government coordination with the Ministry of Justice, the Ministry of Trade, Industry and Energy, and other relevant authorities. From a practical standpoint, potential risk areas include reporting to foreign headquarters and the sharing of technical data with overseas affiliates. Information exchanges that have traditionally taken place as part of routine business operations may, if not properly managed, be misconstrued as the “disclosure of state secrets for the benefit of a foreign entity.” Companies should therefore establish clear controls over both the scope and procedures of information sharing to mitigate such risks.

To this end, during the six-month grace period prior to the law’s enforcement, companies are advised to review and update their information-sharing protocols, non-disclosure agreements (NDAs), and internal data security policies. In parallel, the Ministry of Trade, Industry and Energy has launched its “2026 Technology Protection Consulting and Security Infrastructure Support Program,” reflecting the government’s view of technology leakage as a direct threat to national industrial competitiveness and its commitment to strengthening corporate security. In line with these policy developments, companies should enhance their internal security systems and establish robust compliance frameworks with the support of legal professionals.

4. Conclusion

As the amendment to the Criminal Act is expected to have a significant impact on business operations—particularly at a time when advanced technologies and economic security are central to corporate competitiveness—companies should carefully review its provisions and establish concrete, practical compliance strategies that can be readily implemented ahead of its enforcement on September 13, 2026.

Yoon & Yang’s Trade Secret PG operates as a multidisciplinary platform, bringing together professionals with expertise across diverse technical fields, including electronics, machinery, and chemistry. The PG includes former prosecutors from the Industrial Technology Crime Investigation Division, as well as former officials from the Korea Fair Trade Commission and the Ministry of Trade, Industry and Energy, enabling us to provide solutions grounded in deep institutional insight. Yoon & Yang’s Trade Secret PG delivers swift and effective legal services across domestic and international disputes, legal advisory, and regulatory responses involving trade secrets and industrial technologies. To further enhance our capabilities, Yoon & Yang operates both an in-house Digital Forensics Center and a Discovery Center, uniquely positioning us to investigate trade secret leaks and to support clients in cross-border disputes with differentiated expertise and effective solutions.