According to Article 36 of the Act on the Protection and Use of Location Information (the “LIA”), the Korea Communications Commission (the “KCC”) is required to conduct periodic inspections of personal location information service providers at least once a year. Additionally, the KCC selectively reviews other location information service providers and location-based service providers.
These periodic inspections are conducted through written and on-site inspections and are intended to enable the KCC to determine whether the subject service providers are fully complying with their obligations under the LIA, including the safe processing of location information.
If a violation of the LIA is discovered during an inspection, the KCC may impose various sanctions on the service provider depending on the violation, including corrective orders, flat administrative fines of up to KRW 20 million, revenue-based administrative fines of up to 3% of the relevant sales revenue and criminal penalties.
The KCC has conducted this year’s inspections of location information-related service providers since April. Given the KCC’s previous practice of actively investigating and issuing dispositions as a follow-up measure to the periodic inspection, those found to be in violation during this year’s inspections may also be subject to further investigations (e.g., additional on-site inspections) and subsequent dispositions, as was the case in 2023. For your reference, in September 2023, prior notices of dispositions were given to those who were found to have violated the LIA.
In light of the above mentioned circumstances, service providers found to be in violation of the LIA during this year’s inspections should prepare for further investigations and dispositions by the KCC. Moreover, location information-related service providers that were not subject to this year’s on-site inspections should still remain cautious with respect to LIA compliance issues, as they may be subject to on-site inspections in the future.
