Government Tightens Rules on Data Security and Consumer Protection
SEOUL, Jan. 28 (Korea Bizwire) — South Korea’s government on Wednesday unveiled a new package of information security measures that would require companies to notify users even when a personal data leak has not occurred but is deemed possible, reflecting a tougher regulatory stance in the wake of repeated cybersecurity incidents.
Under the plan, firms will be obligated to inform users whenever there is a risk of data exposure, expanding disclosure requirements beyond confirmed breaches. Notifications will also be required to include information related to potential compensation claims, the government said.
The measures, which focus on urgent short-term reforms, are aimed at strengthening consumer protection as digital services and artificial intelligence become more deeply embedded in daily life.
The government also said it would introduce a dispute mediation system to address consumer harm arising not only from personal data leaks but from broader information security incidents. The system is expected to be implemented later this year through revisions to the Information and Communications Network Act.
In parallel, authorities plan to bolster safeguards around artificial intelligence and data security by developing sector-specific security models covering infrastructure, services and AI agents. An “AI red team” will be formally launched to identify vulnerabilities in emerging technologies.
Additional steps include tightening rules for encrypting sensitive data held by public institutions and private companies, alongside revisions to national security certification standards.
To encourage proactive risk management, the government will establish clearer reporting procedures and liability protections for so-called white-hat hackers, allowing companies to disclose vulnerabilities and adopt corrective measures without fear of punishment. Firms that actively work to improve security may also receive regulatory incentives.
Looking ahead, officials said they will begin crafting broader cybersecurity policies for general consumer products, as most goods and services now incorporate digital components.
While acknowledging that the proposed measures could significantly improve user protection once legal revisions take effect, the government said further work would be needed to address concerns over insufficient compensation mechanisms and the need for stronger private-sector incentives — particularly as rapid advances in artificial intelligence continue to reshape the security landscape.
M. H. Lee (mhlee@koreabizwire.com)
