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Newsletter | August 2014, Issue 3
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TECHNOLOGY, MEDIA & TELECOMMUNICATIONS
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Dismissal of data leakage case against mobile carrier affirmed by Supreme Court
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In 2008, a third party hacked into a mobile carrier’s systems for managing its users’ personal information, and created a website that provided access to users’ information. The users sued the mobile carrier for damages citing mental distress, and the Seoul Central District Court decided partly in favor of the users. Kim & Chang was retained by the mobile carrier when the District Court’s decision was appealed to the Appellate Court. Based on its extensive expertise in hacking incidents, Kim & Chang successfully argued that the hacking incident in this case did not constitute a “leakage” of personal information under the relevant laws, leading to the Appellate Court’s dismissal of Plaintiffs’ complaint on February 18, 2011. Thereafter, Kim & Chang successfully represented the mobile carrier at the Supreme Court, which affirmed the Appellate Court’s dismissal of the Plaintiffs’ damages suit on May 16, 2014.
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The Supreme Court’s decision is significant, because it clarified the definition of “leakage” which is a factor in deciding whether businesses should be held liable, and provided reasonable guidance on businesses’ liabilities in leakage cases.
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