Who may be affected?
Foreign controllers without their own Korean address or place of business
Applicability depends on the company’s legal role in processing personal information, whether the relevant processing falls within PIPA, the statutory scale or regulatory trigger, and whether a qualifying Korean corporation must be appointed.
What is a personal-information controller?
Under PIPA, a personal-information controller is a public institution, company, organization or individual that processes personal information, directly or through another person, in order to operate a structured personal-information file for business purposes. In practical terms, this commonly includes a business that decides why and how customer, user, employee, applicant, seller or partner information is collected, stored, used, shared or deleted.
What counts as personal information?
Personal information is information about a living individual that identifies the person, can reasonably be combined with other information to identify the person, or has been pseudonymized as defined by PIPA. Depending on context, this may include names, contact details, account information, device or online identifiers, location data, purchase and usage records, support communications and other information linked to an identifiable person.
Common foreign business profiles
- Online platforms, social networks and communication services
- SaaS, cloud, AI and digital-service providers
- E-commerce businesses, marketplaces and mobile applications
- Gaming, media, travel, mobility and subscription businesses
- Other foreign businesses controlling personal information relating to individuals in Korea
Preliminary applicability checklist
- The foreign company is the relevant personal-information controller for the processing at issue. A company acting only as an outsourced service provider under another controller’s instructions requires separate classification; contractual labels alone are not decisive.
- The foreign controller itself has no address or place of business in South Korea.
- At least one of the three alternative statutory triggers below is met.
- Any Korean corporations established or controlled by the foreign controller have been reviewed before an independent representative is considered.
- The appointment will be made in writing and the prescribed representative information will be included in the privacy policy.
The three alternative triggers
- Revenue: Total worldwide revenue in the previous year or previous business year was at least KRW 1 trillion.
- Data-subject scale: During the three months immediately preceding the end of the previous year, the daily average number of data subjects in Korea whose personal information was stored and managed was at least one million.
- PIPC trigger: The controller was ordered to submit relevant goods, documents or other materials under PIPA Article 63(1), and the PIPC deliberated and resolved that appointment of a domestic representative was necessary.
The conditions are alternatives. Meeting any one of them can trigger the appointment requirement. Foreign-currency revenue is converted to Korean won using the previous year’s average exchange rate.
When a Korean corporation must be appointed
If the qualifying foreign controller established a Korean corporation, or has a Korean corporation over which it exercises the prescribed controlling influence, it must appoint the representative from among those Korean corporations. The control tests include authority to appoint or dismiss the representative director, authority to appoint or potentially appoint at least 50% of the officers, or ownership of at least 30% of the issued shares or total capital contributions. An independent third-party representative is generally relevant only when no such qualifying Korean corporation exists.