Contributed By Kim & Chang
The Personal Information Protection Act (PIPA) is the overarching privacy legislation in Korea. Other statutes governing particular types of personal information include the Credit Information Use and Protection Act (the “Credit Information Act”) and the Act on the Protection and Use of Location Information (the “Location Information Act”). The Act on Promotion of Information and Communications Network Utilisation and Information Protection, etc (the “Network Act”) also deals with some privacy issues, such as sending advertising information, appointing a Chief Information Security Officer and issuing certification for information security management systems.
While Korean constitutional law does not expressly guarantee rights related to personal information, the Constitutional Court’s position is that the right to self-determination of personal information derives from general personality rights and the right to privacy and freedom and is thus protected under the Constitution.
The National Assembly passed the proposed bill for the Framework Act on the Development of Artificial Intelligence and the Establishment of a Foundation for Reliability (the “AI Framework Act”), which is set to take effect in the first half of 2026. This statute is Korea’s first foundational law in the field of artificial intelligence, aiming to ensure transparency and safety by imposing various obligations on AI service providers.
The key regulators are as follows:
The PIPC, the KCC, the FSC and the MSIT have the authority to conduct investigations, for example through requests for information and on-site inspections. While the KISA does not have law enforcement authority, it often conducts investigations on behalf of the PIPC and the KCC.
Although investigations are often initiated when data controllers report a data breach or personal information infringement to the regulators, the regulators also conduct regular, as well as ad hoc, inspections based on the relevant laws and regulations. The regulators including PIPC, KCC and FSC, issue an annual work plan at the beginning of each year, and this helps businesses to anticipate industry sectors that may be a target each year. Investigations can also be triggered when there is media coverage of a specific incident or issue.
Regulators must provide a written notice before commencing an investigation, as well as prior to imposing an administrative disposition. In order for an administrative disposition to be lawful, not only should the procedures be lawful, but also the content of such disposition must satisfy the principle of proportionality.
Where a data controller intends to object to an administrative fine, it may do so in writing and go through a trial. For other administrative dispositions, it may file an administrative appeal or an administrative lawsuit.
The administrative fine and the administrative penalty are both monetary sanctions for administrative violations, but they differ in the nature and severity of the offences they address. Typically, administrative fines are imposed for minor violations and have a maximum amount specified by law. In contrast, administrative penalties are reserved for more serious violations, with the maximum amount determined as a percentage of the violator’s revenue.
In practice, administrative fines are calculated based on a predetermined amount according to the type and number of violations. These fines can be adjusted – either increased or decreased – by considering factors such as the severity, duration, motive and damage caused by the violation, as well as other legal criteria. Generally, administrative penalties cannot exceed 3% of the violator’s total revenue, although revenue unrelated to the violation is to be excluded from this calculation. Administrative penalties may also be adjusted based on factors like the number and duration of violations, the profits gained, voluntary corrective actions and efforts to mitigate damage.
Previously, the maximum base amount for administrative penalties was set at “no more than 3% of the revenue related to the violation”. However, with the implementation of the amended PIPA in 2023, this base amount was changed to “no more than 3% of the total revenue”, while allowing for the exclusion of unrelated revenues. Consequently, with the burden of proving the irrelevance to the violation shifted to the data controller, the amounts of imposed administrative penalties have been increasing.
Below are key regulatory actions taken by the PIPC and KCC from 2022 to 2024. As regulations have recently been strengthened, it is important to proactively assess potential legal violation risks and identify conduct that may be problematic for effective risk management.
The AI Framework Act was passed by the National Assembly on 26 December 2024. This legislation establishes obligations for providers of high-impact, production-type, and high-performance AI services to ensure safety and transparency. Key provisions include the following.
The AI Framework Act relies on the existing PIPA regulations when it comes to personal information. The PIPC plays a key role in shaping these regulations.
The AI Framework Act will take effect in the first half of 2026 after one year from its promulgation. Details such as the scope of AI-related obligations, the method of performance, and the level of performance will be determined by the subordinate laws and regulations. As the subordinate laws and guidelines for the AI Framework Act are expected to be established in 2025, it is necessary to keep an eye on the legislative trend.
In terms of personal information, as explained in 1.5 AI Regulation, the AI Framework Act relies on the existing PIPA regulations, and the PIPC plays a key role in shaping these. The PIPC believes that applying the principle of personal information protection in a balanced manner is essential for maximising the benefits and opportunities of using AI, while minimising the risk of personal information infringement potentially caused by AI. In particular, the PIPC seeks to promote the use of data by resolving legal uncertainties through the following systems.
The amount of administrative penalties imposed for violations of the PIPA has increased significantly, and the number of administrative lawsuits filed against PIPC has been increasing. The amount of administrative penalties imposed and the number of lawsuits filed by PIPC has been gradually increasing as follows. In 2020: KRW2.9 billion – five lawsuits; in 2021: KRW9.1 billion – four lawsuits; in 2022: KRW102.5 billion– one lawsuit; and in 2023: KRW23.3 billion – eight lawsuits. Moreover, as explained in 1.3 Enforcement Proceedings and Fines, the amendment to the PIPA has changed the threshold for administrative penalties, which is expected to further increase the number of administrative lawsuits filed against the PIPC.
Meanwhile, the courts, like the PIPC, acknowledge jurisdiction in cases where overseas service providers provide services to domestic users. The major lawsuits explained in 2.2 Recent Case Law also include a number of cases where foreign service providers that were subject to PIPC’s dispositions have objected and filed lawsuits against the PIPC.
Major lawsuits related to privacy in 2023–2024 were as follows.
The PIPA includes a mechanism for collective redress through a dispute mediation system. This allows national and local governments, personal information protection organisations, data subjects, and data controllers to request or apply for collective dispute mediation via the Dispute Mediation Committee. This process is applicable in situations where multiple data subjects experience similar damage or rights infringements, provided the following criteria are met.
Despite this framework, collective dispute mediation has been rarely utilised.
Overview
Currently, there are no specific laws or regulations dedicated solely to the data regulation of the IoT (Internet of Things). Depending on the type of issue, the following individual laws and regulations may be applicable.
The PIPC is actively working on improving systems to balance protection and use of biometric information, so it is important to stay updated on regulatory changes.
Location Information Issues
In Korea, the use of location information is governed by the Location Information Act. The Location Information Act is particularly relevant when collecting and using location data in IoT services, such as connected cars.
Both LIBs and LBSs are required to obtain consent for processing personal location information and implement protective measures to safeguard this information, as mandated by the Location Information Act.
With the rapid advancement of technologies and the emergence of new challenges, South Korean legal and regulatory bodies are actively working to maximise the opportunities these technologies offer while minimising the associated risks to personal information. These efforts are taking place on multiple levels.
As outlined in 3.1 Objectives and Scope of Data Regulation, the MSIT in Korea mandates manufacturers and importers of IoT equipment to implement protective measures that ensure the stability of information and communications networks and the reliability of information. The MSIT’s information protection guidelines, which generally serve as recommendations, detail these protective measures. However, the MSIT can sometimes request other regulatory bodies to integrate these guidelines into their standards for testing, inspection and certification of IoT products.
The key protective measures specified in the guidelines include the following.
Additionally, service providers can opt to obtain Certification of IoT Cybersecurity for their IoT products and associated mobile apps. This certification spans seven areas: identification and authentication, data protection, encryption, software security, updates and technical support, operating system and network security, and hardware security. Products that achieve certification can display a certification mark.
Under the Network Act, the MSIT oversees measures to ensure network safety, while the PIPC is responsible for matters related to personal information. If a relevant authority identifies a violation of either law, whether due to an infringement or through a report or complaint, it can investigate the case and impose sanctions. These sanctions may include corrective orders, administrative fines, or other penalties. For more information, please refer to 1.2 Regulators.
The PIPA does not require data controllers to obtain users’ consent for the installation of cookies, nor does it restrict the use of cookies. However, if the information collected through cookies qualifies as personal information – defined by the PIPA as information that can be easily combined with other information to identify an individual – it falls under the PIPA’s regulations. For example, the PIPA obligates data controllers to state “matters concerning the installation, operation, and refusal of a device that automatically collects personal information, such as an internet access data file” in their privacy policies – ie, data controllers are obligated to state such matters when installing and operating a device that automatically collects personal information such as a cookie or similar technology on their own web or app.
Please refer to 4.2 Personalised Advertising and Other Online Marketing Practices for enforcement trends related to behavioural information collected through cookies.
Personalised Advertising
In the absence of specific statutory regulations regarding the processing of behavioural data for personalised advertising, the general legal principles of the PIPA apply if such information is considered personal information. That is, if online identifiers used for targeted advertising, along with the behavioural information collected, can be combined to personally identify individuals, then this information is classified as personal information. Consequently, to collect and use this behavioural data for personalised advertising, the legal requirements for processing personal information, such as securing legitimate legal grounds for processing, must be met.
Conversely, if the behavioural data does not enable the identification of specific users, it is not considered personal information under PIPA. In this scenario, PIPA regulations do not apply, but the PIPC recommends implementing safety measures. Additionally, the PIPC is developing comprehensive guidelines for collecting behavioural data for customised advertising, which are expected to be released in early 2025.
Online Marketing Practices
In order to send marketing communications via electronic medium such as email or SMS, data controllers must obtain from the data subject (i) consent to processing their personal information for marketing purposes pursuant to the PIPA, and (ii) consent to receiving marketing communications in accordance with the Network Act.
Data controllers are required to comply with certain formality requirements to clearly show that the information is an advertisement, and for night time transmission, separate consent from the data subject is required.
There are no specific regulations or considerations exclusively for processing employees’ personal information; instead, the general provisions of the PIPA apply. Apart from general provisions of the PIPA, below are examples of instances where other related laws may become relevant.
Also, in terms of sharing employees’ personal information with affiliates outside of Korea, data controllers must pay close attention to the legal requirements explained in 5.1 Restrictions on International Data Transfers.
As detailed in 5.1 Restrictions on International Data Transfers, transferring personal information to a third party typically involves either (i) third-party provision or (ii) delegation of processing. Transferring personal information in the course of asset deals is likely to be considered as third-party provision.
While the PIPA generally requires consent from data subjects to provide personal information to a third party, it includes a specific provision regarding the transfer of personal data during asset deals. If a data controller transfers personal information as part of a business transfer or a merger involving all or part of its operations, the controller must notify the data subjects in advance about the following, and a consent requirement is exempted:
In principle, the business transferor shall provide the above information in writing (eg, written document, email, fax, phone, text message or any other equivalent method). However, if the business transferor is unable to provide such information in writing without negligence, the business transferor shall publish this information on a website for at least 30 days. If there is a justifiable reason for not being able to publish the above information on a website, the business transferor shall (i) publish the above information in an easily visible location within the business transferor’s place of business for at least 30 days or (ii) publish it in a daily newspaper that is mainly distributed in the city, province, or region where the business transferor’s place of business is located.
The business transferee has the same notification obligation as the business transferor. However, if the notification has been provided by the business transferor, the business transferee is not required to provide one. Meanwhile, a business transferee which has received personal information as part of a business transfer or merger may use the personal information or provide it to a third party only for the original purpose for which it received the information.
Please note that for “overseas transfer” of personal information that may take place during asset deals, the PIPC has expressed its view that such consent exceptions may not be recognised in its draft guideline published on 31 December 2024. However, this is a “draft” guideline, and the PIPC is expected to release a final version in early 2025.
Restrictions on International Data Transfer
Under the PIPA, a data controller may transfer personal information overseas (ie, provide, delegate the processing of, or store personal information with an overseas entity) only if there is one or more of the following grounds:
In case of international data transfers, the data controller must consult with the recipient and reflect the following in the relevant agreement:
Separate from such regulation regarding overseas transfer, transferring personal information to a third party outside Korea for the purpose of (i) providing personal information to a third party or (ii) delegating the processing of personal information also constitutes (a) third party provision or (b) delegation of processing of personal information under the PIPA, respectively, and these are subject to the relevant provisions of the PIPA in addition to the above-mentioned regulation on overseas transfer. Third-party provision occurs where a data controller provides personal information to a third-party recipient for the purpose and benefit of the third-party recipient. Delegation occurs where a third-party entity processes personal information it receives from the data controller for the purpose and benefit of the data controller.
Restrictions on Third-Party Provision and Delegation
If the transfer in question constitutes a third-party provision within the original purpose of collection, the PIPA requires the data controller to meet at least one of the following grounds:
If the transfer in question constitutes a delegation, consent from the data subject is not required. However, the data controller must disclose details of delegation and enter into a written agreement with the entity which is delegated with the processing of personal information. Such agreement should include matters that are statutorily required under the PIPA.
Apart from regulations mentioned in 5.1 Restrictions on International Data Transfers and 5.3 Data Localisation Requirements, the data controllers are not required to provide notification to government agencies or obtain approvals.
While there is no general data localisation rule under the PIPA, there are individual laws that prohibit overseas transfer of specific types of data, such as the following:
There are no “blocking” statutes that protect Korean companies from the effect of extraterritorial sanctions.
As outlined in 5.1 Restrictions on International Data Transfers, one of the legal bases for transferring personal information internationally is when the PIPC acknowledges that the destination country provides an adequate level of privacy protection. Currently, no country has been recognised by the PIPC as having equivalent personal information protection standards. However, PIPC is working towards recognising such equivalence with the EU. If achieved, this recognition would facilitate the transfer of personal information to the EU. Since much of the process for recognising EU equivalence has been completed, it is anticipated that the remaining steps will conclude shortly.
In addition, in the year plan published by the PIPC, it has expressed its willingness to start a adequacy process for US and Japan, and the adoption of standard contractual clauses as an additional legal ground for international data transfers.
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