Data breaches push South Korea toward stricter corporate liability rules
New amendment could expand company responsibility for large-scale data breaches.
South Korea’s government and ruling party are advancing a second revision of the Personal Information Protection Act to strengthen corporate liability for large-scale data breaches.
The proposed amendment would make it easier for victims of major data breaches to receive compensation and relief. By removing the requirement for victims to prove a company’s ‘intent or negligence’, the amendment would increase companies’ legal liability when user data is compromised, making it more likely that affected individuals can claim damages.
Momentum for stricter rules follows several high-profile incidents, including a recent Coupang data breach that may have exposed personal information linked to numerous user accounts. The case has intensified scrutiny of how firms handle and protect customer data.
South Korea Officials at the Personal Information Protection Commission (PIPC) say victims often struggle to obtain evidence explaining how data breaches occur or how damages arise. The proposed reform would shift a greater evidentiary burden onto companies in disputes over losses.
The amendment would also introduce criminal penalties for anyone who knowingly obtains or distributes leaked personal data, closing a legal gap that currently applies only to employees who unlawfully disclose information. Authorities would gain powers to issue emergency protective orders to limit the spread of compromised data.
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