Tech Giants Including Google, Meta Face Scrutiny Over Data Protection Portrayal in Korea
SEOUL, January 25, 2024 – google, Meta, Microsoft, and OpenAI are among 16 overseas companies that have been directed by South Korea’s Personal Details Protection Commitee (PIPC) to revise how they designate domestic representatives for data protection purposes, according to an announcement today. The move comes ahead of revisions to the Personal Information Protection Act taking effect February 2nd.
The PIPC discovered these companies had appointed a separate legal entity or corporation as their domestic agent, rather than utilizing their established Korean subsidiaries, despite having a presence in the country. Other companies identified include paypal, roblox, Supercell, Zoom, Agoda, Booking.com, Intel, Line, Robo Rock, Shuin, Salesforce, and Sporty Pie.
The upcoming amendment to the Personal Information Protection Act mandates that overseas operators designate a corporation as a domestic agent if they have established a Korean corporation, wiht the headquarters responsible for management and oversight. This designation must be completed within six months of the law’s implementation, and non-compliance may result in fines. The system aims to streamline the handling of complaints related to personal information processing and provide avenues for redress.
Previously, companies like Ali Express, Taemu, airbnb, BYD, and Oracle were already designating their Korean subsidiaries as domestic agents, adhering to the spirit of the new law.
“We will guide these operators to change the designation of domestic agents and check the results of the action,” stated a PIPC official. The committee also plans to increase public awareness regarding its guidance for overseas operators without a domestic address or sales office, emphasizing the importance of protecting the rights of Korean users when addressing complaints or damages.
