[Alpha Biz= Kim Jisun] Seoul, October 13 — South Korea’s Personal Information Protection Commission (PIPC) announced plans to introduce punitive fines and a dedicated relief fund for victims of large-scale data breaches, as part of sweeping reforms to strengthen the nation’s privacy enforcement regime.
The initiative comes amid a string of major data leaks involving telecom and financial companies such as SK Telecom, KT, and Lotte Card, which exposed persistent weaknesses in corporate data protection efforts despite previous regulatory amendments.
Punitive Fines and Stricter Sanctions for Repeat Offenders
The PIPC said on Sunday that it will launch a “Data Protection System Reform Task Force” within this month to draft concrete measures aimed at preventing repeated data breaches and improving corporate accountability.
Under the proposed framework, companies that repeatedly experience data leaks or demonstrate gross negligence in security management would face harsher administrative sanctions, including higher and potentially punitive fines.
The commission is also considering expanding criminal penalties for individuals or entities that illegally trade or distribute personal data online — an issue that has escalated alongside digital black market activity.
The PIPC had previously amended the Personal Information Protection Act in September 2023 to raise the maximum fine from 3% of revenue related to the violation to 3% of total company revenue. However, regulators say these measures have not been enough to deter recurring violations.
“Despite strengthened laws, major corporations continue to suffer repeated breaches,” a PIPC official said. “We need stronger deterrents and more effective victim relief mechanisms.”
Creation of a Privacy Protection and Relief Fund
To ensure compensation for affected individuals, the PIPC plans to establish a special fund financed by collected fines. This fund would be used for victim relief, data protection initiatives, and corporate security improvement programs.
At the same time, the commission is considering incentive-based mechanisms, such as fine reductions for companies that invest proactively in encryption, authentication, or early self-reporting and compensation programs.
Expanded Notification and Transparency Obligations
The reform package also aims to broaden data breach notification requirements, obligating companies to inform all potentially affected individuals when a leak is suspected — not only confirmed victims. The PIPC will also review ways to strengthen mandatory reporting obligations for both public and private entities.
Additionally, the PIPC is considering introducing a “consent decree system” — allowing companies that experience a breach to propose and implement their own corrective measures, subject to the commission’s approval, as an alternative to lengthy punitive proceedings.
The effectiveness of mandatory data breach insurance will also be reassessed to ensure victims receive faster and more comprehensive compensation.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
