Seoul: South Korea will introduce strengthened penalties this week for companies that suffer personal information leaks affecting more than 10 million people, the privacy watchdog said Thursday. The move comes as Seoul has sought to strengthen protection of personal information in the wake of high-profile cases, including e-commerce operator Coupang's data breach that affected more than 37 million users.
According to Yonhap News Agency, under the revised personal information protection law set to take effect Friday, companies that suffer such large-scale leaks due to intentional misconduct or gross negligence can be punished with a penalty up to 10 percent of their sales, according to the Personal Information Protection Commission. This marks a significant increase from the previous maximum penalty, which was capped at 3 percent of sales.
Companies that repeatedly violate personal information laws within three years or those that suffer data leaks by failing to follow corrective orders are also subject to the punishment. This measure is part of a broader effort to ensure companies prioritize the protection of personal data and adhere to corrective actions when necessary.
The watchdog, however, noted that it could reduce up to 40 percent of the penalty by taking into account the level of investment companies took for personal information protection and other safety measures. This provision aims to encourage companies to enhance their data protection infrastructure and mitigate risks proactively.