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Newsletter | April 2015, Issue 1
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TECHNOLOGY, MEDIA & TELECOMMUNICATIONS
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Proposed Amendment to the Location Information Protection Act
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On January 12, 2015, the National Assembly passed the Proposed Partial Amendment to the Location Information Protection Act (“Proposed Amendment”). The Proposed Amendment will be effective as of August 4, 2015. Major details of the Proposed Amendment are as follows:
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Abolishing Reporting Obligation for Location-Based Information Service Providers Not Using Personal Location Information
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The Location Information Promotion Act (“LIPA”) regulates two types of location-related businesses, i.e., Location Information Businesses (“LIB”) and Location-Based Information Services (“LBS”). The LIB operators collect and store location information and are required to obtain the requisite license from the Korea Communications Commission (the “KCC”). LBS providers, on the other hand, only utilize the location information collected and stored by LIB operators in connection with their services, and are currently required to file a report with the KCC.
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Under the Proposed Amendment, however, LBS providers that do not utilize “Personal Location Information” will be exempt from the reporting requirement. Here, “Personal Location Information” means information regarding the location of a specific individual, including (1) information which by itself can identify the individual’s location and (2) information which cannot identify the location of a specific individual by itself, but can be easily combined with other information to identify the individual’s location.
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Given the broad definition of “Personal Location Information,” it is still unclear to what degree LBS providers will be exempt from the reporting requirement under the Proposed Amendment. As such, it will be important to monitor the position and enforcement practices of the applicable regulatory authorities to determine how broadly or narrowly the reporting exemption will be applied.
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Relaxing Notification Requirements for Disclosing Personal Location Information
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Currently, the LIPA requires an LBS provider to notify the relevant individual when it discloses his/her Personal Location Information to a third party. Such notice is required to be provided every time the LBS provider makes such third party disclosure, and should include, among others, the name of the third party recipient and the purpose, date and time of such disclosure.
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The Proposed Amendment relaxes the notification requirement. If the LBS provider obtains the consent of the individual, then the LBS provider may provide a single notice to the individual of all third party disclosures made during a maximum 30-day period. Further details of the relaxed notification requirements will be set forth in the Presidential Decree to the Proposed Amendment, which has yet to be drafted.
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Authorizing the KCC to Request Information and Conduct Field Investigations
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Under the LIPA, both LIB operators and LBS providers are required to implement managerial and technical measures to protect location information, such as setting up firewalls, using encryption software, etc. While the LIPA already empowers the KCC to conduct general inspections to ensure compliance with such managerial and technical requirements, the Proposed Amendment has expanded the KCC’s inspection powers.
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Specifically, in case the KCC discovers, suspects or receives a complaint about an LIPA violation, then the KCC may request the LIB operator or LBS provider to submit necessary information. If the LIB operator or LBS provider refuses to comply with such request or is found to have violated the LIPA, then the KCC may conduct a field investigation in order to examine the facilities or equipment of the LIB operator or LBS provider. Further, the Proposed Amendment provides that an administrative fine of KRW 10 million or less can be imposed against the LIB operator or LBS provider that refuses to comply, or interferes with, the KCC’s information request or field investigation.
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