S. Korea to introduce strengthened penalties for large-scale data leaks

Korea will be implementing tougher penalties this week for companies that experience large-scale data leaks affecting over 10 million individuals, according to the privacy watchdog. This development follows Seoul's efforts to enhance personal information protection following high-profile instances, such as the data breach at e-commerce giant Coupang, which impacted more than 37 million users.

The revised personal information protection law, set to commence on Friday, stipulates that companies found guilty of such extensive breaches due to deliberate misconduct or serious negligence could face a penalty amounting to up to 10 percent of their sales, as per the Personal Information Protection Commission. Companies that repeatedly breach personal information laws within a span of three years, or those that suffer data leaks due to non-compliance with corrective measures, will also be subject to this penalty.

Previously, companies were liable to a maximum penalty of 3 percent of their sales. The watchdog, however, highlighted its potential to reduce the penalty by up to 40 percent, considering the extent of investment made by the companies.