South Korea

Screen Shot 2018-07-20 at 2.00.32 PMBy Oh Mi-Jeong, Lee International

An amendment to the Act on the Promotion of Information and Communications Network Utilisation and Information Protection, Etc was passed by the National Assembly of the Republic of Korea on May 28, 2018. The Act regulates matters related to information and communications networks (ICNs) and information and communications services (ICS) which use telecommunications. It applies to providers of ICS, such as telecommunications companies and internet portal companies.

The amendment focuses on improving the safety of ICNs and protecting personal information used in ICNs. One noteworthy new requirement under the amendment is a provision that contains new standards for reporting and designating a Chief Information Security Officer (CISO). A CISO is a person who is in charge of the security of an information and communications system and safe management of the information in it. He/she is responsible for the establishment/management/operation of the information protection and management system, prevention of or response to any intrusions into the ICNs, development of pre-emptive information protection measures, design and implementation of security action plans, etc.

While the previous version of the Act required ICS providers to designate a CISO based on the number of employees, users, etc. and then report the designation to the Minister of Science, Information and Communications Technology, the amended Act contains different standards for designating and reporting information about CISOs. It requires ICS providers to designate a CISO based on the amount of total assets, revenue, etc. and then report it to the Minister of Science, Information and Communications Technology (Article 45-3(1) of the Act). The details regarding such standards for ICS providers, including the total amount of assets, revenue, etc. that will trigger the requirements, are expected to be determined in the future under a Presidential Decree related to the Act.

In addition, the amended Act prohibits CISOs from holding other positions and doing work other than work related to information protection (Article 45-3(3) of the Act). Traditionally, many CISOs working for ICS providers have done additional work unrelated to information protection. For example, Chief Information Officers (CIOs) have commonly performed the work of a CISO along with their other duties. Although the work scope of a CIO who is generally in charge of matters related to an ICN often includes the work of a CISO, such a practice has been criticised with the argument made that holding such dual positions can lead to inadequate information protection because a CIO may have insufficient time to devote to that job given the CIO’s many other responsibilities. Therefore, the amendment of the Act is expected to enhance the professionalism of CISOs in their work on information security by prohibiting holding more than one position in any ICS provider over a certain size. For the financial sector, hacking and cyber terrorism events that occurred in 2013 previously led to the prohibition of CISOs from holding more than one position in 2014 under the Electronic Financial Transactions Act.

Other than the provisions on CISOs, major changes made in the amendment of the Act include:

  • In connection with personal information protection in the information and communications sector, when the Act and the Personal Information Protection Act compete with each other in their application, the Act shall take precedence (Article 5 of the Act)
  • When ICS providers need to access information stored and functions installed in mobile devices of users in order to provide their relevant services, ICS providers shall inform users of the items that will be accessed, the reason for access, and the fact that users may withhold consent for the ICS providers to access their mobile device, and the ICS providers must obtain consent of users to permit the ICS providers to have access authority. The Korea Communications Commission will be given authority under the amended Act to conduct a survey on whether the providers of ICS have complied with applicable laws and regulations related to obtaining access authority from users. (Article 22-2(4) of the Act)
  • In order to guarantee payment of damages by ICS providers found liable for breaches of their obligations on protection of personal information, any ICS provider over a certain size shall be required to take necessary measures, such as obtaining appropriate insurance coverage, or creating a reserve fund to pay for damages (Article 32-3 of the Act)
  • If mobile device users wish to question/challenge the charges they receive for goods or services purchased using their mobile devices, they will now be given authority to request information from the sellers of those goods/services for which the users were charged, including the identity and other information about the persons who purchased such goods/services. The sellers will be required to provide the requested information within 3 days following the date of request, absent a reasonable cause for delay. The user shall use the information supplied by the sellers only to check the accuracy of the charges received and to submit the information to investigative agencies when the user’s personal information is illegally used. (Article 58-2 of the Act)

 

2012_LeeInternational New Logo

 

 

 

http//: www.leeinternational.com

Email: mjoh@leeinternational.com

Tel: 82 2 2262 6288

Fax: 82 2 2279 5020

Related Articles by Firm
Major amendments to the Product Liability Act
Since its introduction on July 1, 2002, the Product Liability Act has been enforced for the purpose of holding manufacturers, etc, liable for any damages caused to life, body or property resulting from defects of their products, according to the principle of ...
The Gig Economy: A challenge to conventional labour law
Both employers and workers should pay attention to the issues ...
Major amendments to the Unfair Competition Prevention and Trade Secrets Protection Act
Following its amendment on April 17, 2018, the new provisions of the Unfair Competition Prevention and Trade Secrets Protection Act took effect on July 18, 2018 ...
“Fat finger” mistakes in the Korean stock market
Attention is being focused on typos made in transactions in the Korean stock market.
Brand protection strategies for Korea
Nicholas Park, senior foreign attorney at Lee International IP & Law Group chaired a timely discussion with some of our Seoul in-house thought leaders ...
Ordinary wages in Korea
Calculation of ordinary wages in Korea can have a profound impact on an employer’s labour costs, as ordinary wages are used to calculate other benefits and compensation, including overtime, compensation for unused annual paid leave and severance pay.
Recent amendments to employment and labour laws in Korea
Amendments to several Korean employment and labour statutes were passed on November 28, 2017 and will take effect during the first half of 2018 ...
South Korea: Amendment of the Fair Trade Act
A proposed amendment of the Enforcement Decree of the Monopoly Regulation and Fair Trade Act (Fair Trade Act) was approved by the State Council on September 26, 2017 ...
South Korea: Big data ownership and regulation
On October 16, 2017, the US Supreme Court decided to hear a case in which Microsoft refused to submit requested data to US law enforcement authorities for a criminal investigation ...
SOUTH KOREA: Amendment of Korean Fair Trade-related Laws
The Moon administration is seeking reforms in a variety of areas of the Korean economy, based on its vision of “an economy pursuing co-prosperity” ...
South Korea: Compelling foreign-based inventors to provide deposition testimony in the US
As part of the discovery process in US patent litigation, the party accused of patent infringement will seek the deposition testimony of the inventor ...
Are shares donated to a foundation subject to gift tax?
Hwang Pil-sang, the founder of Suwon Kyocharo, a Korean daily newspaper, decided to donate money earned through his newspaper business to help students of the university he attended ...
Constitutional Court’s decision on Specific Crimes Act changes sentencing expectations
Sparked by an increase in the number of repeat offenders committing crimes, Korea has enacted a number of laws designed to prevent crimes by imposing aggravated punishment on repeat offenders...
Revised Korean law to protect privacy in smartphone apps
On March 22, 2016, Korea took steps to strengthen the protection of personal information in smartphone applications through a partial revision of the Korean Act on Promotion of Information and Communications Network Utilisation and Information Protection, etc.
Unfair competition in Korea
The Korean government has taken steps to protect trade secrets more effectively by easing the requirements for trade information to become trade secrets and by enabling ...
Hanjin Shipping’s bankruptcy: is it sailing toward liquidation?
On August 31, 2016, Korea’s largest shipping company and the seventh-largest shipping line in the world, Hanjin Shipping, filed a rehabilitation (bankruptcy) action in Korea. That filing reverberated around the globe...
Comparing liquidated damages and punitive penalties in Korea
Parties to contracts in Korea generally use two types of damages/penalty clauses to prevent breaches of contract: liquidated damages and punitive penalties. ...
The Enforcement Decree of the Act on Fair Agency Transactions
On July 26, 2016, the Korean Fair Trade Commission (FTC) made a pre-announcement of proposed legislation known as the ...
Amendment of the Arbitration Act
The amended Arbitration Act was announced on May 29, 2016. It is the first time in 17 years that the Arbitration Act has ....
Companies face restrictions under Graft Act
Following the Constitutional Court’s decision on the Improper Solicitation and Graft Act, known as the Kim Young-ran Act, ...
Major reform of Korean Trademark Law to follow international trends
The Act Providing Major Amendments to the Trademark Law (the Act) was passed by the National Assembly on February 4 ...
The right to be forgotten
One of the issues created by the Internet concerns the right to delete what one has posted on the web ...
Special act on revitalising companies to take effect in August 2016
On February 4, 2016, the “Special Act on Revitalising Companies” (the Act) was passed by the National Assembly of Korea as temporary legislation ...
The Korean government announces Guidelines on Fair Employee Evaluations and Rules of Employment to help enforce its labour reforms
On January 22, 2016, the Ministry of Employment and Labour (MOEL) announced Guidelines on Fair Employee Evaluations and Guidelines ...
New amendment to the Korean Commercial Code
On November 15, 2015, an amendment to the Korean Commercial Code (the KCC) was announced. The amendment, which will take effect in February 2016...
Status of Executives under the Labour Standards Act
Many multinational companies doing business in Korea perceive the country’s labour law as strict and heavily favouring workers. The Labour Standards Act of Korea (LSA) nullifies “at-will” employment ...
Why is a global understanding of intellectual property laws important?
Start-ups and small companies attempting to grow their businesses globally are increasingly receiving warning letters ...
Risk of issuing a warning letter to customers of an alleged patent infringer
Issuance of a cease and desist letter is usually recognised as the first step to be taken by a patentee against an alleged infringer in a patent infringement dispute in Korea. A warning letter to an alleged infringer ...
Tightened regulations on multinational intercompany transactions in Korea 2015
Multinational enterprises (MNEs) that operate or contemplate operating multinational businesses in Korea need to be aware of recent changes in the Adjustment of International Taxes Act of Korea ...
Review of the amendments to the Commercial Building Lease Protection Act
Under the previous version of the Commercial Building Lease Protection Act (the Act), a commercial tenant could lose the value of its ‘leasehold premium’ (kwon-ri-gum in Korean), which is the monetary ...
Amendment to the use and protection of credit information
The Use and Protection of Credit Information Act (the Act) was recently amended and is scheduled to take effect on September 12, ...
Use of in-kind contributions for new shares subscriptions in Korea
When investing in a company by subscribing to new shares, the investor can pay the subscription price in cash or in kind. Contributions …
Patent Protection vs. Fair Competition
There has been a significant increase in the number of cases related to the issue of whether the exercise of intellectual property rights violated the Fair Trade Act. These cases have …
KFTC amends the review guidelines on unfair exercise of intellectual property rights
On December 17, 2014, the Korea Fair Trade Commission (KFTC) amended the review guidelines on unfair exercise of intellectual property rights (Revised Guidelines), effective December 24, 2014. …
The latest win by Lone Star against national tax service
On June 13, 2014, the Seoul Administrative Court ruled in favour of Lone Star Funds and ordered the tax office to refund US$117 million in taxes collected on the sale of a block of shares …
South Korea – success as an FTA hub?
Koreans often think of themselves as the shrimp between whales and, as the Korean proverb has it, when whales fight it is the shrimp whose back is broken. These days, Korea is more of an orca than a shrimp, but ...
Korean court’s position on parallel importing of genuine goods
Parallel importing occurs when a third party imports genuine goods to Korea without the express permission of the sole/exclusive importer of the goods. …
Current trends with Domain Name Disputes
There have been many instances where a company, intending to expand its business into the Internet world, learns that someone already has registered and owns the company’s business name on …
Considerations in Contracting with DAPA
The Defense Acquisition Program Administration (DAPA) of South Korea is responsible for handling and overseeing projects related to military supplies and defense industry procurement. …
Foreign investment into casino-resorts in Korea
In recent years, the Korean regulatory environment has become increasingly aimed at attracting foreign investors and developers to invest into Korea and boost Korea’s tourism industry. Currently eight …
Suggestions for improving Korea’s parallel importation system
‘Parallel Importation’ refers to the importation of genuine foreign products (products covered by the trademark of a foreign company with legitimate trademark rights) by third parties, using different distribution …
The FBPA: South Korea’s Act to prevent bribery of foreign officials
Recently, several former executives of a large multinational corporation were hit with the largest civil penalty ever for individuals in a corporate foreign bribery case - each was ordered to pay US$524,000. …
Amendment to the Foreign Investment Promotion Act
The current Monopoly Regulation and Fair Trade Act (MRFTA) of Korea generally prohibits a second-tier company (i.e., a domestic company …
Project Financing Vehicles (PFVs)
The use of Special Purpose Companies (SPCs) has become prevalent in financing large projects that demand substantial amounts of money …
Understanding the ‘5 percent rule’ for Korean equity holdings
Under Article 147 of the Financial Investment Services and Capital Markets Act (FSCMA), an investor who acquires 5 percent or more …
Liability for a Culpa in Contrahendo in Korean law in light of the Hyundai Group Case
In 2010, Hyundai Group, backed by Hyundai Merchant Marine, was named the preferred bidder for the 34.88 percent stake in Hyundai Engineering & Construction (Hyundai E&C)…
Working with ‘Inter Partes Review’
On September 16th, 2012, the US Patent and Trademark Office (USPTO) initiated a new procedure called Inter Partes Review or …
Worker’s compensation rights and ‘Ordinary Wages’
Under Article 6 of the Enforcement Decree of the Labor Standard Act (the Labor Act), ‘Ordinary Wages’ is defined as …
Franchising in Korea: areas for consideration
Over the past decade the number of franchises launched by domestic and foreign companies in Korea has increased significantly …
Related Articles
New anti-money laundering law
The new law introduces subtle but important changes to the AML landscape in the UAE.
Nobody's got time for that! General counsel and legaltech
How to overcome the lack of time, resources and knowhow needed to implement technology solutions.
Secondary laws under the Trade Competition Act BE 2560
The enactment of these five Notifications represents a significant leap of progress.
Related Articles by Jurisdiction
Selling a piece of their Seoul?
Following the ratification of the EU and US Free Trade Agreements with South Korea in 2011 and 2012 respectively, the liberalisation of the legal market in South Korea will bring sweeping changes to the territory after a raft of foreign firms seek ...
Musical chairs: finding the right seat
Asian-Counsel takes a look at the state of arbitration in various jurisdictions across the region, and uncovers the lofty aims of several arbitration centres.
Latest Articles
The thing about … Carl Im
The brains behind eYulchon talks to Patrick Dransfield about his algorithmic approach to corporate compliance ...
New anti-money laundering law
The new law introduces subtle but important changes to the AML landscape in the UAE.