The Personal Information Protection Commission (PIPC) is set to introduce a reward system for reporting data breaches, establish an integrated fund for victim compensation, and promote the use of original personal data for public interest artificial intelligence (AI) development.
Song Kyung-hee, chair of the PIPC, presented these initiatives in the '2026 Second Half Work Plan' during a briefing at the Blue House on July 16.
The PIPC aims to strengthen its response system for data breaches. Companies that promptly report breaches will receive incentives, while those that delay reporting or intentionally neglect incidents will face increased fines.
A new reward system will be established to compensate whistleblowers who contribute to the detection of illegal activities. Additionally, the commission plans to implement penalties for those who knowingly purchase or distribute leaked personal data. The PIPC will also collaborate with relevant ministries to create an integrated fund that utilizes fine revenues for victim compensation and rights restoration.
Support measures for the AI industry are also included. The PIPC will introduce special provisions allowing the use of original personal data for AI development aimed at public and social benefits, provided that safety measures are in place. Furthermore, the commission will establish an 'AX Safe Support System' to alleviate legal uncertainties faced by companies in the data utilization process.
In line with the punitive fine system set to take effect in September, which allows fines of up to 10% of a company's maximum revenue, the PIPC will also revise its sanctioning framework. For large-scale breaches involving over one million records, a dedicated investigation team will be formed to conduct swift inquiries and impose penalties. The commission plans to clarify corporate liability for damages as well.
* This article has been translated by AI.
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