As the Korea Communications Commission (the “KCC”) plans to conduct periodic status reviews in 2024 in connection with companies’ location information businesses (“LIB”) or location-based services (“LBS”), we provide the following information.
Pursuant to Article 36 of the Act on the Protection and Use of Location Information (the “LIA”), the KCC is required to conduct periodic status reviews of personal location information business providers at least once a year. A status review consists of a written review and an on-site review. Accordingly, the KCC conducts periodic status reviews of LIB providers and LBS providers in the first half of each year. As in the case of last year, the KCC is confirmed to have commenced this year’s periodic status reviews as of April, with follow-up on-site reviews expected to take place thereafter.
Personal location information business providers under Article 5 (2) of the LIA are subject to periodic status reviews each year. As for LIB and LBS providers, only some of them will be inspected (in lieu of inspecting every provider).
The KCC may conduct additional on-site reviews and give advance notice of sanctions in 2024 based on the findings of its status reviews performed in 2023. As such, for service providers that were subject to status reviews in 2023, it is essential to be prepared for the KCC’s follow-up measures.
If a service provider is found to have been in violation of the LIA during a status review, it may be subject to a variety of sanctions depending on the severity of the violation, including a corrective order, an administrative fine of up to KRW 20 million, an administrative surcharge penalty of up to 3% of relevant sales and even criminal penalties.
