Financial Crime World

Data Protection Regulations in Korea

Registration/Notification Requirements

All entities operating in Korea must register with the data protection authority for Large-Scale Informational Processing (LIB) or Large-Business Information Systems (LBS). The registration process does not distinguish between local and foreign legal entities, making it applicable to all relevant parties. The registration/notification requirements do not specify categories of individuals, types of personal data, or processing purposes.

  • No specific information required: Unlike other jurisdictions, there is no requirement for entities to provide detailed information about the categories of individuals affected, categories of personal data processed, or the intended processing purposes during the registration/notification process.
  • Administrative fines for non-compliance: Failure to register/notifying incurs administrative fines, which are enforced by the relevant authorities.

Sanctions for Failure

The consequences of failing to comply with data protection regulations in Korea can be severe. In addition to administrative fines, a lack of a Data Protection Officer (DPO) can increase the risk of revenue-based penalties in the event of a data incident.

  • Administrative fines: Entities that fail to register/notifying face administrative fines, which are enforced by the relevant authorities.
  • Revenue-based penalties for data incidents: A lack of a DPO can exacerbate risks leading to revenue-based penalties upon occurrence of a data incident.

Appointment of Data Protection Officer (DPO)

Every data controller in Korea must appoint a Data Protection Officer, with some exceptions for small businesses where the owner or legal representative is deemed the DPO. Failure to appoint a DPO incurs administrative fines up to KRW 10 million.

  • Mandatory appointment: The appointment of a DPO is mandatory for all data controllers, except in cases where the business meets specific criteria as a small business.
  • Exceptions for small businesses: Small businesses may not need to appoint a dedicated DPO if the owner or legal representative is deemed suitable.
  • Administrative fines for non-compliance: Failure to appoint a DPO incurs administrative fines up to KRW 10 million.

DPO Responsibilities

The Data Protection Officer (DPO) plays a critical role in ensuring compliance with data protection regulations in Korea. Their responsibilities include:

  • Preparing and implementing personal data protection plans: The DPO is responsible for creating and enforcing policies and procedures to protect personal data.
  • Supervising, inspecting, and training on personal data processing and security practices: The DPO oversees the implementation of secure data processing practices and provides training to ensure compliance.

Note that specific details about the registration process (e.g., online submission, public availability of lists), requirements for small businesses or entities with significant sales or personal data volumes, and technical qualifications might require further clarification.