On July 16, 2026, the Personal Information Protection Commission (“PIPC”) announced its work plan for the second half of 2026 during a presidential briefing.
Amid growing threats of data breaches, including those involving AI-enabled hacking, and rapidly increasing demand for data utilization driven by economy-wide AI transformation ("AX"), the PIPC outlined four key priorities: (i) mainstreaming personal information protection through preventive systems, (ii) establishing a safe data utilization framework to support AX innovation, (iii) enhancing data subject rights in ways perceptible to the public, and (iv) ensuring swift investigations and effective sanctions. The key details are as follows.
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Mainstreaming Personal Information Protection Through Preventive Systems
As strengthened sanctions, including punitive administrative fines, increase the burden on companies and institutions in the event of data breaches, the PIPC plans to implement both regular and ad hoc inspections focusing on sectors closely related to daily life and those with significant spillover effects in case of breaches.
The PIPC also indicated that it will consider mitigating administrative fines if companies demonstrate that it had taken strong preventive measures, such as sustained investments in security and the expertise of the Chief Privacy Officer (CPO). In addition, efforts across the entire cyber incident lifecycle, including cyber incident response efforts, such as prompt detection and reporting, and efforts to restore a secure protection framework, such as establishing measures to prevent recurrence, will be taken into account in determining the amount of administrative fines.
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Establishing a Safe Data Utilization Framework for AX Innovation
The PIPC will promote the introduction of a special regime, called AI Original Data Utilization Exception[1], allowing the use of original personal information for AI development serving public or social interests, subject to tailored safeguards. It also plans to publish sector-specific guidelines, including for agentic AI and public sector AX, to support safe data processing and AI deployment in practice.
To further facilitate AX in both the public and private sectors, the PIPC intends to establish an integrated support system, tentatively named the AX Safe Harbor Support Framework, that consolidates various innovation-support mechanisms, including prior adequacy reviews, no-action letters, proactive legal interpretations, and regulatory sandboxes.
In response to increasing cross-border data transfers, the PIPC also plans to expand lawful transfer mechanisms beyond those currently provided under the law, such as separate consent and adequacy decision, to include the use of Standard Contractual Clauses developed by the PIPC and Binding Corporate Rules approved by the PIPC.
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Enhancing Data Subject Rights
In response to concerns over insufficient compensation for individuals affected by data breaches, the PIPC plans to strengthen the statutory damages regime by clarifying companies' liability for damages and requiring companies to bear the burden of proof regarding breach-related liability.
The PIPC also announced plans to establish a fund so that collected administrative fines may be used for victim compensation and rights relief.
In addition, to prevent privacy infringements arising from new technologies, the PIPC will analyze dark patterns and risk factors in major apps closely related to daily life and promote the development of Privacy Enhancing Technologies to anticipate and respond to emerging privacy threats.
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Ensuring Swift Investigations and Effective Sanctions
The PIPC plans to form dedicated task forces to conduct focused investigations and enforcement actions for major incidents, such as those involving leakages of over 1 million data subjects, while introducing expedited procedures for smaller cases.
With the amended Personal Information Protection Act set to take effect on September 11, 2026, allowing administrative fine of up to 10% of the total sales revenue for repeated or serious violations, the PIPC will overhaul the overall sanctions framework, including subordinate regulations and guidelines.
It also plans to introduce measures to enhance enforcement effectiveness, such as enforcement fine for non-cooperation with investigations, evidence preservation orders, and emergency protective measures, such as suspension of infringement prior to a final determination.
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In addition to the above four priorities, the PIPC also indicated that it will:
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Expand the legal bases for personal information processing to reflect the AI environment and establish principles for personal information processing and protection that take into account real-world data environments, including emerging devices, such as smart glasses.
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Introduce incentives for good-faith reporting and early response to data breaches, while imposing aggravated fines for intentional neglect, and establish new sanctions for concealing or destroying evidence related to data breach incidents.
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Prohibit the distribution of exfiltrated personal information, including via the dark web, with knowledge of its unlawful origin, introduce criminal penalties (imprisonment of up to five years or a criminal fine of up to KRW 50 million), and establish legal grounds for the PIPC to collect, detect, delete, and block illegally distributed data.
The PIPC has consistently emphasized strengthening a prevention-oriented personal information protection framework, while ensuring effective enforcement. With the amended PIPA taking effect in the second half of this year, raising the cap on the administrative fines to up to 10% of the total sales revenue, and with increased consideration and institutional support for preventive and responsive measures, companies are advised to review and enhance their personal information protection governance frameworks and preventive measures.
[1] The proposed amendment to the Personal Information Protection Act introducing the AI Original Data Utilization Exception is currently pending before the National Assembly.
[Korean Version]