South Korea plans reward system for reporting personal information leaks

The government will introduce a reward system for reporting personal information leaks and establish an integrated damage relief fund, the Personal Information Protection Commission said Thursday. In cases involving more than 1 million pieces of personal information, a dedicated investigation team will conduct intensive probes.

Companies that refuse to cooperate, conceal evidence, or destroy records will face strengthened sanctions.

Compensation and liability changes The commission will overhaul the compensation system after criticism that victims receive insufficient payments. It will clarify corporate liability rules and require companies to prove they are not responsible for leaks.

The commission will also work with the Ministry of Planning and Budget to add a personal information damage relief function to the public interest whistleblower incentive fund. Revenue from fines will support an integrated fund for victim relief and rights restoration.

Investigation and enforcement updates A rapid processing procedure will apply to smaller cases with clear criteria for action. A new legal provision will prohibit distribution of known leaked personal information, with penalties of up to five years in prison or a fine of up to 50 million won.

Reports of personal information leaks rose from 307 in 2024 to 447 last year, with 432 cases recorded in the first half of this year.