South Korea Expands Access to Personal Data, Raising Privacy Concerns and Industry Hopes | Be Korea-savvy

South Korea Expands Access to Personal Data, Raising Privacy Concerns and Industry Hopes


The South Korean government has announced plans to release a wide range of personal data to businesses, researchers, and the public this year. (Image courtesy of Yonhap)

The South Korean government has announced plans to release a wide range of personal data to businesses, researchers, and the public this year. (Image courtesy of Yonhap)

SEOUL, Jul. 9 (Korea Bizwire) – In a bold move to bolster its artificial intelligence industry, the South Korean government has announced plans to release a wide range of personal data to businesses, researchers, and the public this year.

The data, which will undergo pseudonymization, includes sensitive information such as college entrance exam scores, medical records, public transportation usage, and social security details. 

Experts say this trend is likely to intensify, given the crucial role personal data plays in advancing AI technology. However, the move has sparked a debate about balancing privacy concerns with the need for technological progress. 

According to a report from the Korea Institute for Industrial Economics and Trade (KIET), the number of domestic companies adopting AI technology has more than tripled in five years, from 174 in 2017 to 539 in 2021. The revenue of these companies has also doubled, from 2 trillion won in 2020 to 4 trillion won in 2022. 

“It’s difficult for AI technology to advance without using personal information,” said Shin Jongchul, a visiting professor at Yonsei University’s Graduate School of Law. “As more companies utilize AI, the amount of personal information being made available will inevitably increase.” 

The Ministry of the Interior and Safety has already opened up public data in 20 areas closely related to daily life, including public transportation usage and legal interpretations, as part of a national initiative.

The Personal Information Protection Commission has also designated institutions such as the Korea Expressway Corporation and the Korea Social Security Information Service as pilot agencies for Personal Information Safety Zones, allowing for more diverse data processing.

However, the expansion of data access has not been without controversy. When the Ministry of Education announced in May that it would provide researchers with de-identified college entrance exam scores from three years ago, some teachers’ unions and civic groups demanded the policy be withdrawn, citing concerns about potential identification of individuals and the promotion of competitive education. 

Kim, a 41-year-old parent of an elementary school student, expressed worry: “Could my son potentially discover my college entrance exam scores? I question whether it’s appropriate to disclose such information without the consent of those involved.” 

Businesses, on the other hand, claim that the available data is not particularly useful. A high-ranking official at a major domestic online shopping mall said, “It’s unclear who this expanded disclosure of personal information is benefiting. We haven’t noticed any significant changes in the field.” 

Experts suggest that addressing the ambiguity surrounding data usage is key to satisfying both data subjects and businesses. Kim Seungjoo, a professor at Korea University’s Graduate School of Information Security, pointed out that despite the announced increase of pseudonymized personal information disclosure, there has been little actual utilization due to unresolved uncertainties crucial for businesses venturing into new areas. 

The European Union’s recent AI Act final draft provides a possible model, classifying AI into four risk levels with corresponding regulations and usage scopes, while also specifying the extent of personal data collection allowed.

Jung Se Jin, an attorney at Yulchon LLC, emphasized the need for clear standards in pseudonymization. “Rather than simply expanding the scope of pseudonymized information, we need to establish clear criteria for the pseudonymization process,” he said.

Jung added that regulatory agencies should take a more proactive role in establishing definitions and standards for personal information to ensure South Korea doesn’t fall behind in AI technology development.

Kevin Lee (kevinlee@koreabizwire.com) 

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