Targeting Coupang's Unreasonable Claims? President Lee: "Tougher Personal Data Sanctions Not Aimed at Specific Companies"

President Lee Presides Over Work Report
"Actions Based on Law and Policy Regardless of Country or Company Characteristics"... Coupang Claims 'Targeted Sanctions'
Fines to Exceed Security Investments... 30% Whistleblower Reward Under Review

President Lee Jae-myung clarified on July 16 that the government’s plan to strengthen sanctions against personal data breaches is not a measure targeting any specific company. Although he did not explicitly name any companies, his remarks are widely interpreted as a reference to Coupang, which recently received a record-high penalty from the Personal Information Protection Commission (PIPC) amounting to 624.681 billion won. Coupang has announced its intention to contest the fine through legal action, while the government has consistently stated that these measures are not aimed at any particular company or country.

President Lee Jae-myung is speaking at the ministry work report held at the Blue House Guest House on the 16th. July 16, 2026 [Photo by Blue House Press Photographers Group] Yonhap News Agency

At the ministry work report by the Personal Information Protection Commission held at the Blue House Guest House on the same day, President Lee said, “Recently, the amount of fines has increased somewhat, and I believe there are companies claiming that 'this might be intended to target specific firms.' My response is as follows.” He continued, “It is the policy of the Republic of Korea to strengthen sanctions against the leakage or misuse of personal data. I think it is important to sufficiently explain that these actions were taken purely in accordance with the law and policy, without any consideration for the characteristics of any particular company.” In response, Song Kyunghee, Chairperson of the Personal Information Protection Commission, replied, “We are focusing on violations of the law and imposing sanctions strictly and fairly, regardless of the country, company, or institution involved.”

In June, the Personal Information Protection Commission determined that Coupang’s insufficient basic security measures led to the leaking of the personal information of approximately 37.55 million people. The authority also found violations regarding notification of leakage and mandatory deletion of personal data, breach of the requirement to ensure the independence of the data protection officer, and obstruction of investigations. Consequently, Coupang was slapped with a 624.681 billion won penalty and a 16.8 million won administrative fine.

President Lee underscored that the economic penalties for personal data breaches must greatly exceed the costs of corporate security investment. He pointed out, “Some companies neglect data protection because they know that, in the event of a leak, the penalty to be paid is lower than what they would pay for proper security. As a result, major leaks occur after years of disregard.” He added, “By significantly raising the penalties for personal data breaches or misuse so that they massively surpass the costs of protection, companies will be compelled to engage in real data protection activities.” His comments indicate a need to restructure corporate cost structures so that it is more advantageous to invest in preemptive security systems rather than simply paying penalties after an incident.

The government also plans to strengthen penalties against companies that intentionally conceal personal data leaks or hide or destroy evidence. The Personal Information Protection Commission reported that it is considering a system that would offer a reduction of penalties for companies that sincerely report leaks, but impose a surcharge—of at least 30%—on those caught failing to report incidents.

President Lee also called for the introduction of a large-scale reward scheme for whistleblowers to encourage internal reporting. He asked, “Are you considering a system where about 30% of collected penalties are awarded to whistleblowers?” Chairperson Song responded, “It is difficult to detect concealment or destruction of evidence without inside information. So we are preparing a bill that provides rewards to those who report such conduct, and are reviewing a 30% share as seen in other ministries’ examples.” In addition, President Lee instructed a comprehensive review of the statute of limitations for imposing penalties related to personal data violations.

This content was produced with the assistance of AI translation services.