South Korea Increases Data Breach Penalties to 10% of Company Revenue

South Korea has raised the maximum penalty for data‑breach violations to 10 % of a company’s annual revenue, a move announced by the Ministry of the Interior and Safety on Thursday. The new rule, part of amendments to the Personal Information Protection Act, replaces the former cap of 5 % and is intended to tighten enforcement of data‑security standards across all sectors. The change applies to breaches that result in loss, damage, or the unauthorized disclosure of personal information, and it is effective immediately.

Under the revised law, companies that fail to meet the new threshold will face fines that can reach 10 % of their yearly revenue, a figure that represents a substantial increase for many firms. The amendment also expands the scope of violations covered, requiring firms to implement stronger safeguards and to report incidents within a stricter timeframe. The government has stressed that the move is part of a broader effort to align domestic data‑protection practices with international norms and to deter negligent handling of personal data.

The announcement has attracted significant attention online, including a discussion on Hacker News where the article received 165 upvotes and 46 comments. Analysts note that the higher fines could prompt companies to invest more heavily in cybersecurity infrastructure and compliance programs, reinforcing South Korea’s reputation as a leader in digital privacy protection.