[Personal Information] Revised Data 3 Act A to Z ③ What is the impact of the Data 3 Act revision on corporations?

The Data 3 Law’s amendment, along with the expansion of data usage scope, has led companies to focus on developing new services and opportunities for creating them.

Compared to foreign companies like Google and Amazon, which are already conducting targeted marketing using big data, domestic companies had limited scope for personal information usage. Consequently, this data 3 law amendment is expected to provide a catalyst for domestic IT companies to develop new technologies, products, and services utilizing big data.

Companies that currently hold personal information can convert some of it into anonymous information, reducing the burden of personal information management, or utilizing the information to conduct marketing strategies or customer data analysis without regulatory restrictions.

While the Data 3 Law amendment has created a foundation for developing new industries through the activation of data usage and established a basis for using anonymous information without the consent of the information subject,

① When providing customized services targeting specific individuals, the legitimate processing of personal information must be ensured, such as obtaining the consent of the information subject; and,

② In the event of processing information for the purpose of identifying a specific individual based on anonymous information, a fine of no more than 3% of the total revenue (not including related revenue) can be levied; or, in cases where calculation is difficult, a fine of 400 million won or 3% of capital stock, whichever is higher.

③ The penalty for damages in the Promotion of Information and Communications Network Act has been increased to 5 times the existing limit of 3 times.

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Furthermore, the ‘Personal Information Committee’ has been unified into a single body, and it is expected that the Personal Information Committee will develop various guidelines in the future.

Since the emergence of big data, managing personal information has become a new business for companies. Consequently, various data management projects and related contract work have increased. Given the legal basis for data usage established by this Data 3 Law amendment, data sharing and transactions between industries are expected to become established, so companies need to thoroughly prepare follow-up measures for activating the data economy.

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The Personal Information Protection Team at Law Firm Veat provides comprehensive support, from legal advice on personal information compliance, including drafting personal information protection policies and consent forms, to personal information processing appropriateness consultation and personal information protection system establishment consulting.

Based on its accumulated experience and expertise, Law Firm Veat utilizes its proprietary research methodologies and checklists, along with various materials, to diagnose and analyze personal information protection policies currently in use by companies, and to suggest improvement plans.

For companies pursuing new businesses and requiring comprehensive consultations on personal information protection, please contact Law Firm Veat.

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