South Korea faces mounting challenges in balancing its economic dependence on China with growing concerns over industrial espionage and geopolitical pressures from Beijing.
South Korean authorities indicted a military intelligence agent in August 2024 for allegedly providing classified information to Chinese intelligence operatives over seven years, receiving approximately 7,471 US dollars in exchange for secrets. Military prosecutors stated the agent used silent camera features to photograph confidential materials and created multiple accounts with different passwords to evade detection.
The case highlights a legal gap in South Korean law. Current espionage statutes only apply to North Korea, leaving authorities unable to file espionage charges against those who spy for other nations including China. South Korean lawmakers moved to address this vulnerability, with parliament passing revised espionage legislation in November 2024 that expands punishable offenses to include spying for countries beyond North Korea.
Industrial espionage targeting South Korean technology has intensified. A 66 year old semiconductor expert who spent 18 years at Samsung Electronics and another decade at SK Hynix was indicted for allegedly stealing manufacturing secrets worth millions of dollars to establish a competing facility in China. Prosecutors said the former executive recruited approximately 200 engineers from Samsung and Hynix and attempted to build a copycat chip production line in Xi’an, where Samsung operates advanced facilities.
Chinese authorities detained a South Korean semiconductor technician in December 2023, accusing him of leaking chip manufacturing information to South Korea under China’s expanded anti-espionage law implemented in July 2023. The case marked the first arrest of a South Korean national under the revised legislation.
In April 2025, prosecutors charged a 22 year old South Korean army supply specialist with transmitting classified information about Ulchi Freedom Shield, a major joint military exercise with the United States, to China’s Intelligence Bureau of the Joint Staff Department. The soldier allegedly accessed the South Korean National Defense Network using military credentials, photographed files with an iPhone purchased in China, and uploaded materials to a Chinese server between August and February.
Chinese nationals were caught filming South Korean military and key government facilities on 11 occasions since June 2024, according to reports from South Korean authorities. Three Chinese students were apprehended in June 2024 using drones to photograph a US aircraft carrier.
The espionage concerns occur against broader diplomatic tensions. Former President Yoon Suk Yeol referenced alleged Chinese espionage in a December 2024 public address defending his controversial martial law declaration, prompting strong objections from China’s Ministry of Foreign Affairs. Beijing expressed surprise and dissatisfaction at the remarks, further straining bilateral relations despite earlier momentum toward improved ties.
At the Asia-Pacific Economic Cooperation summit in Peru in November 2024, Presidents Xi Jinping and Yoon Suk Yeol met on the margins of the gathering. Yoon stated that South Korea remains committed to developing rules based cooperation with China and resolving misunderstandings through quick and honest dialogue.
Economic considerations complicate the relationship. China serves as South Korea’s largest trading partner, making cooperation on supply chains and tourism particularly critical for Seoul’s economic interests. However, experts warn that China possesses various options for economic retaliation against South Korea, with previous controls on urea exports demonstrating Beijing’s willingness to use trade as leverage.
Chinese Ambassador to South Korea Xing Haiming warned Seoul in May 2024 not to work against China based on values, stating that Beijing hopes South Korea remains wary of small anti-China groups and continues partnerships that facilitate mutual development. The comments reflected China’s apprehension about Seoul’s strengthening cooperation with Washington and Tokyo.
Yoon’s impeachment and removal from office in early 2025 created uncertainty about South Korea’s future diplomatic direction. Lee Jae Myung, who became president in June 2025, campaigned on resetting relations with China while maintaining the US alliance as the foundation of South Korean security.
South Korea’s National Intelligence Service (NIS) documented 93 suspected industrial espionage cases between 2018 and 2023, with semiconductor, display, and battery industries serving as prime targets. Data from the Democratic Party of Korea indicated authorities detected 23 industrial espionage cases in 2023 alone, with the majority involving cutting edge semiconductor technologies.
Analysts suggest South Korea’s challenge lies in maintaining economic ties with China while protecting technological advantages and security interests. Seoul recently introduced visa free entry for Chinese tourists to boost visitor numbers, while simultaneously reassuring Washington of its commitment to expanding defense spending and upholding the bilateral alliance.
