Han Sung-sook apologizes for data leak from 'Modoo's Startup' project, vows strict accountability

Prime minister nominee Han Sung-sook on Monday issued a formal apology over a personal data breach involving the Ministry of SMEs and Startups' "Modoo's Startup" project, saying she was "sincerely sorry to the users who have been worried and inconvenienced."

Han, who currently serves as minister of SMEs and Startups, made the remarks as she arrived at her confirmation hearing preparation office at the Financial Supervisory Service training center in Tongui-dong, Jongno-gu, Seoul. "We failed to protect the trust of those who believed in the government and took on the challenge of starting a business," she said. She added that she felt "a heavy sense of responsibility as the minister in charge" and expressed deep regret over what had happened.

Han also said the Modoo's Startup project was conceived as a work in progress — something to be built together — rather than a finished product. "But no policy rationale can take precedence over the responsibility to protect people's personal information and trust," she said.

The ministry took emergency security measures as soon as it became aware of the incident, Han said. "We are currently investigating the cause of the breach, how the data was leaked, and the scope of the damage together with relevant agencies," she said. "We will also work in parallel with external security specialists to conduct a security audit and develop improvement measures to ensure objectivity and expertise in the review."

Han pledged to make protecting affected users the top priority, saying the ministry would move quickly to prevent further harm and put in place measures to ensure that participants' business ideas are safely protected.

She added that the ministry would thoroughly examine concerns raised before the incident as well as the entire process of building and operating the system. It would also verify whether necessary measures were taken in a timely manner and whether there were any shortcomings in oversight and management.

Han also promised a full review of the personal data protection and security management framework, along with stronger oversight of external contractors and more rigorous checks for security vulnerabilities to prevent similar incidents from recurring. "We will transparently disclose the investigation results to the public and take strict action regarding any wrongdoing and accountability," she said.

Han said entrepreneurship is "a critically important youth policy and a national priority," and stressed that the incident must not dampen young people's passion and determination to start businesses.

"I will take another look to make sure those who dream of starting a business do not hesitate to take on new challenges," she said, adding that she would meet directly with participants going forward.

Han bowed her head and said she would "rebuild the project into a fair and trustworthy program where people can participate with confidence," pledging to do her utmost to restore trust through a thorough investigation and responsible follow-up measures.

The Ministry of SMEs and Startups had earlier disclosed that the personal data of 5,000 people accepted into the Modoo's Startup project had been leaked. The investigation found that the breach was not the result of an external attack on the project itself, but occurred when a company participating as a support vendor for project participants was hacked.