Data breach, it cannot be dismissed as a simple ‘risk’ – legal review is essential.

As digital transformation accelerates, the value and importance of personal information is increasing. Customer information handled by companies is no longer just data, but a core asset directly linked to trust. However, personal information leakage incidents are also occurring, which can lead to significant legal and financial risks for companies.

For example, A Card Company was fined approximately 1.34 billion won due to inadequate internal controls and misuse of personal information for purposes other than those stated, and B Travel Agency received administrative sanctions worth hundreds of millions of won due to a hacking attack that leaked 3.06 million pieces of personal information. These cases demonstrate that personal information leakage can go beyond a simple security incident, resulting in substantial legal and financial damage to companies.

“Personal Information Protection Law” prevention is the best response

The process by which companies collect and process personal information is subject to the strict regulations of the Personal Information Protection Law. Personal information processors must take various technical and administrative measures to ensure the security of personal information, and failure to do so can result in administrative sanctions such as fines, public announcements, and corrective orders. Specifically, Article 64-2(1)(9) of the Personal Information Protection Law stipulates that personal information processors who fail to take security measures and cause personal information to be leaked may be subject to fines. This means that preventative measures play a crucial role in reducing a company’s legal responsibility.

For example, the procedure of checking whether sensitive personal information such as resident registration numbers and financial information is included before uploading documents to bulletin boards or websites is the most basic preventive measure. It is also important to set individual recipients when sending emails and apply file encryption and device locking functions to work devices. Considering that many leakage incidents have stemmed from basic errors such as email recipient errors and posting files on bulletin boards, these measures are simple but highly effective preventative measures.

Despite all precautions, personal information leakage incidents can occur at any time. According to the ‘2024 Personal Information Leakage Reporting Trends and Prevention Methods’ report released by the Personal Information Protection Committee, a total of 307 personal information leakage reports were received only in 2024. Of these 307, hacking accounted for the largest proportion at 56%, followed by work-related errors (30%) and system errors (7%). This indicates that internal negligence and inadequate system management are also major causes.

When a personal information leakage incident occurs, companies must respond quickly and transparently. According to Article 39(1) of the Enforcement Decree of the Personal Information Protection Law, companies must notify the information subject within 72 hours from the time they become aware of the incident, and provide detailed information on the items of leaked information, the time of occurrence, and the countermeasures.

This is not just a formality, but a minimum measure to minimize secondary damage to the information subject and maintain trust in the company. Hiding the incident or reporting it late can lead to legal responsibility and damage to the company’s image that is difficult to recover.

Legal advice should be a 'proactive strategy,' not a post-incident response.

Recent cases show that risks are also significant due to the absence of internal security regulations, neglected access controls, and unauthorized use of personal information, not just system hacking.

In fact, in industries that handle large amounts of personal information, such as finance, healthcare, education, and travel, personal information protection levels are acting as important evaluation criteria in the partner selection and investment attraction processes. In this trend, proactively checking legal risks and establishing systematic response manuals is not just about avoiding legal violations, but about enhancing a company’s credibility as a ‘strategic choice.’

Law firm Veat, led by partners Jo Eun-byeol and Baek Seung-cheol, has high expertise and extensive practical experience in the Personal Information Protection Law field and provides customized consulting to support personal information protection measures and rapid and practical legal responses in the event of a leakage incident.

Law firm Veat's partner Jo Eun-byeol has been recognized and awarded as an excellent legal advisor by the Personal Information Protection Committee and has strengths in legal interpretation, regulatory response, and policy consultation related to personal information. She is also actively contributing to system improvement through her involvement in various public advisory bodies such as the Information Disclosure Deliberation Committee, the Proactive Administration Committee, and the Personal Information Dispute Resolution Committee.

Partner Baek Seung-cheol is active as a member of the Personal Information Processing Policy Evaluation Committee and other personal information-related deliberation and advisory committees, and as a personal information and PIPL (Personal Information Protection Law) certified auditor with the Korean Bar Association’s IT Personal Information Protection Advisory Lawyer, and actively conducts personal information protection education for public organizations and educational institutions.

Based on the experience of providing customized legal advice to various companies in the field of personal information protection, Law firm Veat can provide specialized advice tailored to your specific situation. Please feel free to contact [Law firm Veat Personal Information Center] for any inquiries related to the Personal Information Protection Law.

Thank you.

Law firm Veat