On September 10, the Personal Information Protection Commission (“PIPC”) announced the “Plan to Strengthen the Security Management System for Personal Information” (“Plan”).
 
Amid rising concerns over large-scale data breaches, the PIPC criticized the prevailing view of personal information protection as a mere cost burden, which leads to passive compliance by many companies adopting only the minimum legally required security measures. To foster proactive adoption of robust security measures by data controllers and to strengthen remedies for affected data subjects, the PIPC introduced three key strategic measures.
 

• Enhanced Attack Surface Management (“ASM”)^[1] for Major Personal Information Processing Systems: The PIPC proposed to enhance ASM through continuous monitoring of major personal information processing systems to detect anomalies^[2] and eliminate vulnerabilities. The PIPC plans to issue detailed guidelines on anomaly types and response methods.
   

• Incentivize Proactive Measures: Data controllers that voluntarily implement additional encryption beyond the minimum statutory requirements or adopt systems to detect and block unusual activities will be eligible for incentives–e.g., reduced liability in the event of a data breach.
   

• Strengthening Secondary Harm Prevention through Leakage Monitoring: When illegally leaked personal information is detected (e.g., on dark web), the PIPC will facilitate timely information sharing with the affected businesses and individuals to prevent secondary harm. The PIPC also plans to pursue amendments to the Personal Information Protection Act (“PIPA”) to establish a legal basis for penalizing unlawful online data distributors.
   

• Phased Application of ISMS-P Certification: The PIPC proposed a phased application of ISMS-P certification, whereby ISMS-P certification will be progressively mandated for key public institutions handling sensitive or large-scale personal information, telecommunications service providers, and mobile identity verification service providers. Planned changes also include preliminary/on-site assessments, stricter post-certification management, and enhanced oversight of certified companies that experience security incidents.
   

• Clear Minimum Investment Standards: Large-scale data controllers, who are required to designate a Chief Privacy Officer (“CPO”) with enhanced qualifications,^[3] must also appoint at least one additional privacy officer and establish a dedicated privacy team. Moreover, companies allocating 10% or more of their IT budget to personal information protection (including security) may qualify for liability reductions in case of incidents, with tiered incentives linked to the budget size.
   

• CEO- and CPO-focused Internal Controls: The CEO will hold ultimate responsibility for risk management and internal controls related to personal information protection. For large-scale data controllers, the appointment of a CPO must be reported to the PIPC, and any appointment or dismissal must be approved by the board of directors.
   

• Promotion of Privacy Impact Assessment (“PIA”) in the Private Sector and Enhancing Expertise: The PIPC plans to lay the foundations for broader use of PIA in the private sector by specifying the scope, methods, and standards for PIA, as well as clarifying the procedures to mitigate liability in case of incidents.
   

• Oversight of Large-Scale Data Processors and Solution Providers: The PIPC plans to establish a legal basis to strengthen oversight of large-scale data processors (delegatees) and solution providers, particularly those servicing small- and medium-sized enterprises with limited personal information protection capabilities. The PIPC will also introduce a new certification framework to assess and ensure comprehensive protection of personal information processed through such solutions.
   

• Swift and Rigorous Investigation and Enforcement: Policy studies are planned to enhance the effectiveness of sanctions, including raising administrative fines and imposing punitive penalties on companies that repeatedly experience data breaches. Additionally, the PIPC will establish a forensic lab for rapid incident investigations and will require timely notifications to the affected parties when potential leaks are detected, even when data breaches are not conclusively confirmed.
   

• Enhanced Remedies for Victims: The PIPC proposed mechanisms to redirect administrative fines levied for violations under the PIPA towards victim compensation, alongside expedited mediation processes for personal information disputes.
   

• Personal Information Ombudsman Program: The PIPC plans to introduce a “Personal Information Ombudsman” program to enable civil society’s active involvement in market oversight, system recommendations, and policy advocacy.
   

• Building a Stronger Foundation for Remedies: The PIPC will invest in training specialists, bolstering technical analysis capabilities, and supporting development of insurance products related to data breaches to improve compensation frameworks.
   

To implement the Plan, the PIPC aims to prepare the necessary legal amendments by 2025 for submission to the National Assembly in early 2026, following stakeholder consultations. As many of these measures may significantly impact the compliance obligation of businesses handling personal information, companies are advised to closely monitor upcoming legislative amendments, guidelines, and related policy developments.

^[1]   Activities that continuously identify, analyze, and monitor vulnerabilities and paths that attackers may target to reduce security threats.
^[2]   Abnormal authentication attempts (such as analysis of access routes and frequency), attempts to download personal information, etc.
^[3]   Refers to (i) entities with annual sales of KRW 150 billion or more that process sensitive or unique identification information of 50,000 or more individuals, or personal information of 1 million or more individuals; (ii) universities with 20,000 or more enrolled students as of December 31 of the previous year; (iii) tertiary hospitals; and (iv) public system operating agencies.

[Korean Version]