South Korea to introduce compliance levies, criminal penalties in sweeping AI personal data overhaul

South Korea's Personal Information Protection Commission will introduce compliance levies to strengthen the effectiveness of investigations into personal data breaches. The move comes after some companies failed to comply with data submission requests during breach investigations last year, hampering the commission's work.

The commission also plans to establish criminal liability for the illegal distribution of personal data as part of a broader push to crack down on violations.

The commission announced these measures Thursday at a ministerial meeting on economic affairs, presenting its Third Basic Plan for Personal Information Protection (2027–2029), titled "Promoting AI Innovation Based on Trust."

The plan is organized around four pillars: overhauling the personal data protection regime for the AI transformation era, establishing a prevention-first protection system, advancing strategic personal data policy, and strengthening public rights and a culture of trust.

As a priority, the commission will reinforce its investigative and sanctions deterrence against legal violations such as negligent data management. Companies that fail to comply with data submission requests or correction orders following a breach will be subject to compliance levies — a measure designed to bolster supervisory authority and deter violations.

For the illegal distribution of personal data, the commission will create a new criminal penalty framework and expand the government's role in detection, deletion, and the collection and analysis of related information.

Measures to prevent data breaches before they occur will also be pursued. The commission plans to establish a pan-government standing defense system and institutionalize AI security audits. AI technology will be integrated into the Information Security Management System–Personal (ISMS-P) certification and various assessment frameworks to improve their effectiveness.

In the public sector, which holds and processes large volumes of personal data, the commission will prioritize tightening safety standards, expanding routine inspection systems, and improving the effectiveness of evaluation regimes to raise overall protection levels.

In response to the spread of physical AI environments, the commission will also review a cyber-physical integrated security framework covering both digital security and physical safety regulations. Improvements to safety standards that account for agentic AI-based attacks will likewise be pursued.

As demand for cross-border personal data transfers grows — driven by generative AI and cloud environments — the commission plans to expand its data transfer network. It will broaden the use of standard contractual clauses and binding corporate rules to handle the increase in overseas data transfers, and will secure greater flexibility for cross-border data flows through global joint research. New overseas transfer status surveys and overseas transfer impact assessments will also be introduced.

The commission will overhaul the personal data protection regime to promote data utilization in the AI era. An "AX Support Center" will be established to resolve uncertainties around personal data processing during AI transformation.

Rights protections for victims of personal data breaches will also be strengthened. The commission will build a one-stop remedy system linking every step of the process — from reporting a breach to investigation, dispute mediation and compensation. It will also establish a dedicated agency to advance data subjects' rights, and will reinforce the effectiveness of damage recovery, active dispute mediation and other redress mechanisms.

Commission Chairwoman Song Gyeong-hui said the three-year plan is aimed at redesigning the personal data regulatory framework to suit the AI environment and establishing a prevention-first protection system. "We will focus our policy efforts on creating an environment where the public can enjoy the benefits of AI with peace of mind, and where businesses can innovate on the basis of trust," she said.