Korea PIPA Data Privacy Compliance Guide for Foreign Companies (2026)
South Korea’s Personal Information Protection Act (PIPA) is one of the most comprehensive data privacy laws in Asia — and foreign companies operating in or targeting Korea are not exempt. Whether you run a SaaS platform serving Korean users, operate a Korean subsidiary, or process Korean employees’ data at your overseas headquarters, PIPA likely applies to you.
This guide explains what PIPA requires, how it applies to foreign companies, and what practical steps you need to take in 2026 to stay compliant.
Table of Contents
Open Table of Contents
What Is PIPA?
The Personal Information Protection Act (개인정보 보호법) was enacted in 2011 and has undergone significant amendments since — most recently in 2023, with ongoing regulatory guidance issued through 2025 and 2026 by the Personal Information Protection Commission (PIPC, 개인정보보호위원회), Korea’s independent data protection authority.
PIPA covers:
- Collection, use, provision, and destruction of personal information
- Rights of data subjects (access, correction, deletion, portability)
- Cross-border data transfers
- Security and breach notification obligations
- Designation of a Personal Information Protection Officer (PIPO)
Unlike some jurisdictions, Korea’s PIPA does not limit itself to domestic companies. Any organization — regardless of nationality — that processes Korean residents’ personal data falls within its scope.
Does PIPA Apply to Your Foreign Company?
In January 2025, the PIPC issued updated guidelines clarifying PIPA’s extraterritorial scope for foreign operators. The key test is whether your organization processes personal data of individuals located in Korea, even if you have no physical presence there.
PIPA Applies If You:
| Scenario | PIPA Applicable? |
|---|---|
| Operate a Korean subsidiary that handles employee data | ✅ Yes |
| Run a global e-commerce platform selling to Korean consumers | ✅ Yes |
| Provide SaaS/app services to Korean users | ✅ Yes |
| Transfer Korean employees’ data to HQ abroad | ✅ Yes (cross-border rules) |
| Process data of Korean nationals outside Korea | ✅ Likely yes |
| Exclusively process non-Korean users’ data, no Korean activity | ❌ Likely no |
Important nuance from PIPC guidance (2025): If a foreign company designates its Korean entity as the data controller for Korean users in its privacy policy, PIPA applies to that Korean entity — even if data processing physically occurs elsewhere.
Designating a Local Representative
Foreign companies without a Korean establishment but subject to PIPA must designate a local representative (국내대리인) in Korea. This representative:
- Must be reachable by Korean data subjects and the PIPC
- Accepts legal responsibility for PIPA compliance on behalf of the foreign company
- Must be identified in the company’s privacy policy
Key PIPA Obligations
1. Lawful Basis for Processing
PIPA requires one of the following lawful grounds for processing personal information:
- Consent of the data subject (most commonly used)
- Legal obligation (e.g., tax, employment law requirements)
- Vital interests of the data subject
- Legitimate interests of the controller (introduced in the 2023 amendments)
- Public task or exercise of official authority
Consent under PIPA must be specific, informed, and freely given. Bundled consent for unrelated purposes is not permitted.
2. Privacy Notice
Every personal information controller must provide a privacy notice (개인정보 처리방침) that includes:
- Types of personal information collected
- Purpose of collection and use
- Retention period
- Third-party disclosure (if any)
- Cross-border transfer details (if applicable)
- Data subject rights and how to exercise them
- Contact information for PIPO
The notice must be publicly accessible — typically posted on your website.
3. Personal Information Protection Officer (PIPO)
Companies that handle personal information must designate a PIPO (개인정보 보호책임자). The PIPO is responsible for:
- Overseeing personal information management
- Handling data subject complaints
- Maintaining internal compliance policies
- Cooperating with PIPC audits
There is no requirement that the PIPO be a Korean national, but they must be reachable.
4. Internal Management Plan
Korean regulations require a documented internal control plan (내부 관리계획) covering:
- PIPO designation and authority
- Access control policies
- Encryption standards
- Incident response procedures
- Employee training requirements
Failure to maintain this documentation is itself a PIPA violation — even if no actual breach has occurred.
5. Technical and Administrative Security Measures
PIPA mandates appropriate security measures, including:
- Encryption of passwords, financial information, and biometric data in transit and at rest
- Access control limiting who can access personal information
- Audit logs tracking access and handling of personal data
- Intrusion prevention systems for systems holding significant volumes of personal data
6. Data Breach Notification
If a breach involving personal information occurs, the controller must:
- Notify affected individuals without undue delay (within 72 hours for large-scale breaches)
- Report to the PIPC if 1,000 or more individuals are affected
- Provide specific details: types of data leaked, timing, potential impact, measures taken
Cross-Border Data Transfers
This is one of the most critical PIPA obligations for multinational companies. Transferring Korean individuals’ personal data outside Korea requires one of the following:
Permissible Grounds for Cross-Border Transfer
| Method | Requirements |
|---|---|
| Data subject consent | Individual must be informed of: recipient, country, purpose, items transferred, retention period, and right to refuse |
| Standard contractual clauses (SCCs) | Contract with overseas recipient must meet PIPC-approved standards |
| Adequacy decision | Transfer to a country/organization certified as providing equivalent protection |
| PIPC-approved certification | Recipient holds PIPC-recognized certification (e.g., APEC CBPR) |
Practical note: Many foreign companies rely on data subject consent, which is straightforward for consumer-facing services. For intra-group transfers (e.g., Korea subsidiary to US headquarters), SCCs are the most commonly used mechanism.
The PIPC can suspend cross-border transfers if the overseas recipient fails to maintain the required protection standards.
Sensitive Personal Information
PIPA places additional restrictions on sensitive personal information (민감정보), which includes:
- Racial or ethnic origin
- Political opinions
- Religious beliefs
- Health and medical data
- Sexual orientation
- Criminal records
- Biometric information used for identification
- Genetic information
Processing sensitive personal information requires:
- Explicit, separate consent (cannot be bundled with general consent)
- Enhanced security measures
- Strict minimization of collection
2026 Enforcement Trends and Penalties
The PIPC has significantly stepped up enforcement since 2024. In 2025 and into 2026, notable trends include:
Increased Fines
Under the amended PIPA, penalties can reach up to:
- KRW 30 million (~USD 22,000) for administrative fines (과태료)
- 3% of annual revenue for intentional or grossly negligent violations
- Criminal penalties (up to 5 years imprisonment or KRW 50 million fines) for unauthorized collection or disclosure
Focus on Foreign Operators
The PIPC has prioritized enforcement against foreign companies offering services to Korean consumers without adequate local compliance infrastructure. Expect scrutiny on:
- Adequacy of privacy notices in Korean
- Lawfulness of cross-border data transfers
- Existence of a local representative
AI and Automated Decision-Making
With Korea’s AI Basic Act coming into effect in 2026, PIPC has signaled heightened attention to personal data processed by AI systems, including profiling and automated decision-making affecting Korean individuals.
Practical Compliance Checklist
Use this checklist to assess your PIPA compliance posture:
Governance
- PIPO designated and documented
- Internal management plan maintained and updated
- Employee training conducted at least annually
Collection & Use
- Lawful basis identified for each processing activity
- Consent obtained separately for each distinct purpose
- Sensitive data handled with enhanced consent and security
Privacy Notice
- Korean-language privacy notice published
- Notice covers all required elements (including cross-border transfers)
- Notice updated when processing activities change
Cross-Border Transfers
- Transfer mechanism in place (consent, SCC, adequacy)
- Overseas recipient agreements documented
- Transfer details reflected in privacy notice
Security
- Encryption of sensitive data fields implemented
- Access controls and audit logs in place
- Breach response procedure documented and tested
Data Subject Rights
- Process for handling access, correction, and deletion requests established
- Response timelines tracked (generally within 10 days)
How SMA Law Firm Can Help
Navigating PIPA as a foreign company can be complex — especially when balancing Korean law against GDPR, CCPA, or other frameworks your organization already follows.
SMA Law Firm provides:
- PIPA compliance audits for foreign companies entering the Korean market
- Drafting and review of Korean-language privacy notices and internal policies
- Local representative designation services
- SCC preparation for cross-border data transfers
- Regulatory response and PIPC investigation support
📩 Contact us at sma@saemunan.com for a confidential consultation. Our team specializes in supporting international companies with their Korean legal compliance needs.
This article is for informational purposes only and does not constitute legal advice. For specific guidance on your situation, please consult a qualified Korean attorney.