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Amendments to the Enforcement Decree of the Personal Information Protection Act Set to Take Effect Following Cabinet Approval

2025.09.22

In our last newsletter (Link), we shared that the amendment to the Personal Information Protection Act (the “Amended PIPA”) will go into effect on October 2, 2025, mandating foreign data controllers,[1] who have a subsidiary or affiliate in Korea, to designate such subsidiary or affiliate as the domestic agent in Korea and to supervise such agent’s performance of duties.
 
Following this legislative change, the Personal Information Protection Commission (“PIPC”) announced the draft amendment to the Enforcement Decree of the PIPA (the “Proposed Amendment”) on May 30, 2025, which received approval from the Cabinet on September 16, 2025. The Proposed Amendment will take effect concurrently with the Amended PIPA on October 2, 2025.
 

1.

Entities Eligible for Designation as Domestic Agents

Pursuant to the Amended PIPA, foreign data controllers obligated to designate a domestic agent must select the domestic agent from among: (i) a Korean entity established by the data controller or (ii) a Korean entity over which the data controller exercises “significant influence” concerning executive appointment, business operations, and other related matters, as further specified in the Presidential Decree.

The Proposed Amendment clarifies that “significant influence” will be recognized if the foreign data controller (i) has the right to appoint or dismiss the representative director, or to appoint 50% or more of the company’s board members or (ii) holds 30% or more of the company’s issued shares or capital contributions.
 

2.

Duties of Foreign Data Controllers in Supervising Domestic Agents

The Amended PIPA imposes an obligation on foreign data controllers to manage and supervise appropriately their domestic agents to ensure the faithful execution of their responsibilities. The Proposed Amendment further specifies these supervisory duties, requiring foreign data controllers to:
 

  • Provide training to domestic agents on their duties and responsibilities at least once annually, and
     

  • Conduct inspections to confirm: (i) whether the domestic agent has formulated a plan for the performance of its duties; (ii) whether the domestic agent has implemented such plan, and (iii) whether the domestic agent has remedied any deficiencies identified in the course of inspecting the implementation of the plan referred in (ii).
     

With the imminent implementation of the Proposed Amendment, foreign data controllers are advised to closely evaluate whether their current or potential domestic agents satisfy the newly clarified eligibility criteria and to establish oversight measures to ensure compliance.

 


[1]   These provisions only apply to data controllers who are subject to the obligation to appoint a domestic agent under the PIPA.

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