With respect to location information businesses or location-based services provided by companies, the Korea Communications Commission (the “KCC”) plans to conduct a regular inspection in 2023.
Pursuant to Article 36 of the amended Location Information Act (the “LIA”), which took effect on April 20, 2022, the KCC is required to conduct a regular inspection of personal location information providers at least once a year. Accordingly, the KCC conducted its first regular inspection of location information providers and location-based service providers in 2022, and is expected to commence conducting regular inspections for 2023 starting in April. Personal location information providers are subject to an annual inspection, and other location information providers and location-based service providers are subject to selection for inspection.
The KCC’s inspection commences with a written request for information (expected to be issued starting in April 2023). Upon receipt, the service provider in question will be requested to provide a detailed response to each item of the request of information, and submit its responses by the stated deadline in the form of a status checklist, together with relevant evidentiary materials.
The main topics subject to the inspection are as follows, with each topic consisting of ten or more detailed items.
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General status
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Whether there has been any change in the matters previously registered/reported, such as the location information system
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Whether an officer or a person with access authority has been disqualified
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Whether the personal location information business is subject to suspension, discontinuation of business or M&A
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Matters regarding the terms of use and privacy policy
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Status of managerial and technical measures for location information
If a service provider submits an insufficient response to the requests, or statements of non-compliance with the Location Information Act, the KCC may request corrective action by conducting additional on-site inspection/supplementation. If the service provider fails to comply, it may be subject to an administrative disposition.
Therefore, it would be advisable for relevant parties to review compliance with the Location Information Act in advance of the initial submission of responses in order to prepare an accurate and comprehensive response.
Based on actual inspections conducted last year, the major issues were the following:
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(1) |
Whether there has been a failure to report business suspension/closure, etc., despite service suspension/closure; |
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(2) |
Whether there was a failure to register or report any changes in the location information system; |
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(3) |
Whether changes made to the terms of use and the privacy policy properly reflect the amendments to the Location Information Act; |
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(4) |
Whether the location information system has properly maintained automatic recording devices for details of access to and use of the system, etc., in terms of managerial/technical aspects; |
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(5) |
Whether the location information system has been properly encrypted. |
In particular, there appears to have been many issues in relation to the preparation of relevant evidentiary materials.
Therefore, it is prudent to conduct a prior review in advance, and if there are areas that require further discussion regarding potential violations, or for the preparation of evidentiary materials, it is necessary to supplement or prepare for such scenarios before submitting responses to the inspection.
Violations of the relevant provisions of the Location Information Act subject to inspection may result in a variety of sanctions, from corrective orders, administrative fines of up to KRW 20 million, administrative surcharge penalties of up to 3% of relevant sales, and criminal penalties.
