{"id":2207667,"date":"2025-01-02T15:38:58","date_gmt":"2025-01-02T06:38:58","guid":{"rendered":"https:\/\/koreapro.org\/?p=2207667"},"modified":"2025-01-03T15:22:47","modified_gmt":"2025-01-03T06:22:47","slug":"why-south-koreas-new-defense-tech-law-still-leaves-it-vulnerable-to-espionage","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2025\/01\/why-south-koreas-new-defense-tech-law-still-leaves-it-vulnerable-to-espionage\/","title":{"rendered":"Why South Korea\u2019s new defense tech law still leaves it vulnerable to espionage"},"content":{"rendered":"

South Korea has enacted significant amendments to its <\/span>Defense Technology Security Act<\/span><\/a>, introducing stricter penalties for unauthorized transfers of sensitive defense technologies and bolstering mechanisms to safeguard national security.<\/span><\/p>\n

Announced by the defense ministry and the Defense Acquisition Program Administration (DAPA) on <\/span>Dec. 3<\/span><\/a> \u2014 but largely overshadowed by Yoon Suk-yeol\u2019s martial law declaration the same day \u2014 the revised law will take effect on June 3 after a six-month grace period. These changes mark a critical effort to align with international standards and protect the country\u2019s burgeoning defense industry from escalating threats.<\/span><\/p>\n

However, experts told <\/span>Korea Pro<\/span><\/i> that legislative changes alone may not be enough to address the sophisticated threats targeting South Korea\u2019s defense industrial base. They outlined systemic vulnerabilities and the inherent risks tied to the country\u2019s ambitious defense export strategy, emphasizing that real progress requires more than just legal deterrents.<\/span><\/p>\n

\"\"

Models of South Korea\u2019s K9A1 self-propelled howitzer and the Chunmoo MLRS on display at Hanwha\u2019s booth at the Seoul ADEX, Oct. 16, 2023 | Image: Korea Pro<\/em><\/p><\/div>\n

NEW DEFENSE PROTECTIONS<\/b><\/p>\n

The revised legislation <\/span>introduces<\/span><\/a> harsher penalties for unauthorized technology transfers, reflecting South Korea’s commitment to strengthening its defenses against intellectual property theft.<\/span><\/p>\n

Key measures include mandatory minimum sentences of one year in prison and fines up to $13.6 million (20 billion won). Unlike <\/span>previous regulations<\/span><\/a>, which allowed for separate application of imprisonment or fines, courts can now impose both penalties concurrently.<\/span><\/p>\n

Additionally, new provisions address post-contractual violations, requiring the return or destruction of technical data upon the expiration of usage rights. This fills a critical gap in the previous framework, where ambiguities often allowed unauthorized retention or copying of sensitive information.<\/span><\/p>\n

To enhance enforcement capacity, DAPA gains the authority to designate specialized agencies for technology protection, conduct audits, investigate breaches and manage cybersecurity operations. The Defense Technology Protection Committee will also expand its membership to include representatives from the Ministry of SMEs and Startups, fostering better coordination across industrial sectors.<\/span><\/p>\n

\u201cCountries like the United States and western European powers enforce stringent laws to prevent the leakage, unauthorized transfer or illegal use of state strategic or defense technologies,\u201d Choi Gi-il, a defense industry expert and professor at Sangji University\u2019s National Security Division, told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

\u201cThe strengthened laws now allow for real prison sentences instead of just fines,\u201d added Shin Seung-ki, a research fellow at the Korea Institute for Defense Analyses (KIDA). He noted that past cases often resulted in fines, even after reaching the Supreme Court.<\/span><\/p>\n

\"\"

South Korean President Yoon Suk-yeol inspects members of the armed forces while he stands in front of South Korea’s latest ballistic missile, the Hyunmoo 5, Oct. 1, 2024 | Image: ROK Presidential Office<\/a><\/em><\/p><\/div>\n

PERSISTENT SYSTEMIC VULNERABILITIES<\/b><\/p>\n

Despite the legislative advancements, experts cautioned that significant vulnerabilities remain. South Korea\u2019s defense industrial base has long been a target of high-profile breaches, revealing weaknesses in enforcement and cybersecurity protocols.<\/span><\/p>\n

Between <\/span>Feb. and Oct. 2023<\/span><\/a>, prosecutors handled five major cases of defense-related crimes, with the National Intelligence Service warning of evolving theft methods including the exploitation of retirees, targeting of vulnerable subcontractors and corporate acquisitions aimed at accessing proprietary information.<\/span><\/p>\n

Data<\/span><\/a> acquired by People Power Party lawmaker Kang Dae-sik from DAPA\u2019s Defense Industry Technology Leak and Infringement Reporting Center showed an alarming trend, with 15 confirmed cases of leaks from Jan. to Aug. 2024 alone. In comparison, there were only three and five cases in 2022 and 2023, respectively.<\/span><\/p>\n

\u201cSome individuals might still take the risk if they think the financial rewards outweigh a short prison sentence,\u201d said Shin. He emphasized that the asymmetric nature of cybersecurity threats further complicates enforcement, as defensive measures typically require far greater resources than offensive operations.<\/span><\/p>\n

The challenge is further magnified by emerging technologies like artificial intelligence and quantum computing, which expand the avenues for cyberattacks. For instance, North Korean hacking groups have repeatedly demonstrated their ability to infiltrate South Korean defense manufacturers.<\/span><\/p>\n

In <\/span>April 2024<\/span><\/a>, the National Police Agency confirmed that DPRK state-sponsored hackers had penetrated at least 10 firms, stealing critical data with potential implications for national security. These breaches highlight the growing intersection between cybercrime and economic espionage, where state-sponsored actors exploit technological vulnerabilities for strategic gains.\u00a0<\/span><\/p>\n

South Korea must also contend with insider threats, as demonstrated by the <\/span>2020<\/span><\/a> incident involving retired researchers from the Agency for Defense Development (ADD). The theft of advanced missile designs, coupled with over 300,000 unauthorized access attempts, highlights the urgency of strengthening internal controls.<\/span><\/p>\n

\u201cLarge-scale incidents often occur when external attacks coincide with internal breaches,\u201d Shin explained. \u201cAddressing these vulnerabilities requires not just legal enforcement but systemic improvements and educational efforts, including ethical training.\u201d<\/span><\/p>\n

\"\"

Then-South Korean President Moon Jae-in speaks during the unveiling of the KF-21 fighter jet on April 9, 2021 | Image: Moon Jae-in Blue House<\/a><\/em><\/p><\/div>\n

RISKS IN GLOBAL DEFENSE EXPORTS<\/b><\/p>\n

South Korea\u2019s ambitious defense export strategy, which combines local production with technology transfers, presents a dual challenge. While it enhances the country\u2019s global competitiveness, it also exposes proprietary technologies to misuse and reverse engineering by foreign partners.<\/span><\/p>\n

In one notable example, South Korean police launched an investigation in <\/span>Feb. 2024<\/span><\/a> into two Indonesian engineers involved in the KF-21 fighter jet project. Authorities discovered 20GB of classified defense data on USB drives, highlighting the challenges of protecting sensitive information in collaborative projects.<\/span><\/p>\n

Earlier in <\/span>Jan. 2022<\/span><\/a>, Taiwanese legislator Ma Wen-jun ignited controversy by delivering a USB containing <\/span>stolen South Korean technology<\/span><\/a> for the DSME1400 Chang Bogo-class submarine model to Seoul\u2019s representative office in Taipei.<\/span><\/p>\n

The leaked data included sensitive designs for water-oil separation systems and lithium-ion battery mounts.<\/span><\/p>\n

Although Taiwan has denied allegations of appropriating South Korean submarine technology, several Korean technicians later <\/span>reported<\/span><\/a> to local media that they faced persistent requests for extensive technology transfers while working in Taiwan.\u00a0<\/span><\/p>\n

The global implications of such incidents cannot be overstated. Unauthorized use of South Korean technologies risks damaging its credibility as a defense exporter, potentially undermining its partnerships with the U.S., NATO and AUKUS Pillar II. Technology leaks, especially those involving cutting-edge innovations, could undermine South Korea\u2019s credibility as a reliable partner.<\/span><\/p>\n

Additionally, violations of technology transfer agreements could lead to trade disputes or sanctions, further complicating South Korea\u2019s position in international markets.<\/span><\/p>\n

\u201cWith the growth in defense exports and package deals, unauthorized use, reverse engineering and illegal copying have become more common,\u201d Choi added. \u201cAdvanced defense exporters like the U.S. rigorously protect their strategic technologies, enforcing strict penalties for breaches. South Korea must follow suit by strengthening its legal framework.\u201d<\/span><\/p>\n

\u201cWhen production is localized, there\u2019s a strong incentive to take more,\u201d Shin observed, noting that South Korea itself once engaged in similar practices when receiving U.S. technologies. This dynamic, he said, underscores the need for proactive monitoring and enforcement.<\/span><\/p>\n

\"\"

Admiral Kim Myung-soo, Chairman of the ROK Joint Chiefs of Staff, inspects command and control measures at a military base | ROK Joint Chiefs of Staff<\/em><\/p><\/div>\n

LOOKING AHEAD<\/b><\/p>\n

As South Korea continues its ascent as a major defense exporter, exemplified by recent deals with <\/span>Poland<\/span><\/a> and <\/span>Saudi Arabia<\/span><\/a>, the stakes for safeguarding its technologies have never been higher.<\/span><\/p>\n

While the legislative amendments represent a critical step forward, their success will hinge on effective implementation, industry cooperation and the country\u2019s ability to navigate the complexities of global defense markets.<\/span><\/p>\n

The rise of dual-use technologies further complicates matters for South Korea. Innovations in areas like artificial intelligence, robotics and advanced materials have blurred the lines between civilian and military applications, making them prime targets for theft and misuse.<\/span><\/p>\n

\u201cSouth Korea must ensure its industries are better protected, with comprehensive measures to address and deter all forms of technology theft,\u201d Choi told <\/span>Korea Pro<\/span><\/i>.<\/span><\/p>\n

Ultimately, South Korea faces a delicate balancing act: strengthening its defenses against sophisticated threats while maintaining its competitive edge in the global defense market. Failure to address these challenges could jeopardize its ambitions and undermine its national security.<\/span><\/p>\n

Edited by John Lee<\/span><\/i><\/p>\n

Defense & Security<\/span><\/a>Inter-Korean & Foreign Relations<\/span><\/a>Technology & Cyber<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"

South Korea has enacted significant amendments to its Defense Technology Security Act, introducing stricter penalties for unauthorized transfers of sensitive defense technologies and bolstering mechanisms to safeguard national security. Announced by the defense ministry and the Defense Acquisition Program Administration (DAPA) on Dec. 3 \u2014 but largely overshadowed by Yoon Suk-yeol\u2019s martial law declaration the […]<\/p>\n","protected":false},"author":10909,"featured_media":2207683,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[26,28,29],"class_list":["post-2207667","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-defense-security","tag-inter-korean-foreign-relations","tag-technology-cyber"],"yoast_head":"\nWhy South Korea\u2019s new defense tech law still leaves it vulnerable to espionage - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2025\/01\/why-south-koreas-new-defense-tech-law-still-leaves-it-vulnerable-to-espionage\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why South Korea\u2019s new defense tech law still leaves it vulnerable to espionage - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"South Korea has enacted significant amendments to its Defense Technology Security Act, introducing stricter penalties for unauthorized transfers of sensitive defense technologies and bolstering mechanisms to safeguard national security. 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