Korean Data Privacy Law: Compliance Status with Chinese Manufacturers

The provided text is a news report by reporter Ok Song-yi of Digital Daily, discussing the compliance of Chinese home appliance manufacturers wiht South Korea’s domestic privacy laws.

Here’s a summary of the key points:

Non-Compliance Observed: Most Chinese home appliance manufacturers who have entered the Korean market are not complying with domestic privacy laws.
Brands Examined: The report specifically looks at Xiaomi,Roborock,Ecovacs,Midea,and TCL.
TCL and Midea’s Issues:
TCL’s korean website lacked a Korean personal information processing policy. Their “Privacy Policy” found via a “Submit Vulnerabilities” page seems to be a general guideline with a last update date of 2021.
Midea Korea provided its privacy policy only in English, and it appears to comply with the EU’s GDPR (General Data Protection Regulation), not Korean law.
Xiaomi and Roborock’s Policies:
Xiaomi Technology Korea and Roborock Korea provided personal information processing policies in Korean.
Xiaomi stated they audit and contract third-party service providers to comply with the Personal Information Protection Act of the jurisdiction. Though, the report notes a lack of explanation regarding revisions and compliance with domestic regulations.
Roborock Korea explicitly references Article 15(1) of the Personal information Protection Act in its policy,indicating a clearer attempt to comply. This policy was revised on March 14th.
Roborock’s “Collection in China” Controversy:
Roborock’s policy initially included the phrase “Collect Personal information directly in China,” raising consumer concerns.
Roborock clarified that “collection and processing” refers to their role as a processor, not that user data is physically taken to or stored in China. They explained that even having technical access authority constitutes “collection and processing” under Korean law.
Roborock also stated they must comply with the Korean Personal Information Protection Act when providing user data to third parties, including foreign governments. Expert Opinion: Professor Yeom Heung-yeol of Suncheonhyang University’s information security department sees it as positive that some Chinese companies are becoming more aware of the Korean market and revising their policies. He emphasizes the importance of detailed information collection and trust for users and notes that compliance with Korean law is meaningful for understanding how foreign companies handle domestic user data.
* Call for Continuous Compliance: Professor Yeom also stressed that foreign companies’ compliance with Korean law should not be a one-time effort and should extend beyond just initial disclosures.

In essence, the report highlights a general trend of non-compliance among Chinese home appliance manufacturers in Korea regarding local privacy laws, with some brands providing policies in other languages or outdated versions, while others like Roborock are making efforts but still face scrutiny and have past issues to address.

What specific measures can Chinese manufacturers implement to ensure lawful cross-border data transfers under PIPA?

The Landscape of Korean data privacy – PIPA & SOPIPA

South Korea’s data privacy framework is built upon two primary laws: the Personal Details Protection Act (PIPA) and the Act on the Protection of Personal Information Processed by Public Agencies (SOPIPA). While SOPIPA focuses on government entities, PIPA governs the private sector, impacting any organization processing the personal information of Korean citizens, irrespective of where that organization is based. This is crucial for Chinese manufacturers exporting to, or operating within, South Korea.

Key tenets of PIPA include:

Consent Requirements: Explicit consent is generally required for the collection,use,and provision of personal information.

Data Minimization: Organizations must only collect and process data necessary for specified purposes.

Purpose Limitation: Data can only be used for the purposes disclosed at the time of collection.

data Security: Robust security measures are mandated to protect personal information from unauthorized access, use, or disclosure.

Data Subject Rights: Individuals have rights to access, correct, delete, and suspend processing of their personal data.

Data Breach Notification: Mandatory notification requirements exist for data breaches that could cause harm to individuals.

Challenges for Chinese manufacturers

Chinese manufacturers face unique hurdles in complying with PIPA. These stem from several factors:

Cross-Border Data Transfer restrictions: PIPA places strict limitations on transferring personal data outside of South Korea. While exceptions exist (e.g., consent, necessity for contract performance), they require careful consideration and implementation. The Korean Personal Information Protection Commission (PIPC) scrutinizes these transfers.

Cultural & Legal Differences: The concept of individual data privacy is often approached differently in China compared to South Korea. Aligning business practices with PIPA’s stringent requirements necessitates a important shift in mindset.

Language Barriers: Korean privacy policies and legal documentation require accurate translation and understanding. Relying on automated translation tools is insufficient.

Enforcement & Penalties: The PIPC actively enforces PIPA, and penalties for non-compliance can be considerable – including fines of up to 3% of annual revenue.

Supply Chain Complexity: Many Chinese manufacturers operate within complex supply chains. Ensuring all parties involved adhere to PIPA requirements is a significant challenge.

Compliance Strategies for Chinese manufacturers

Here’s a breakdown of actionable steps Chinese manufacturers can take to achieve PIPA compliance:

1. Data mapping & Inventory: Identify all personal information collected, processed, and stored – including data collected through products, services, and websites.
2. Privacy Policy Localization: Develop a Korean-language privacy policy that clearly explains data processing practices, consent mechanisms, and data subject rights. This policy must be easily accessible.
3. Consent Management: Implement robust consent management systems to obtain explicit consent for data collection and use. Ensure consent is freely given, specific, informed, and unambiguous.
4. Data Security Implementation: Invest in appropriate technical and organizational security measures to protect personal information. This includes encryption, access controls, and regular security assessments. Consider ISO 27001 certification.
5. Cross-Border Data Transfer Mechanisms: Utilize legally recognized mechanisms for transferring data outside of South Korea. Options include:

PIPC Approval: Obtaining specific approval from the PIPC for data transfers.

Standard Contractual Clauses (SCCs): Implementing SCCs approved by the PIPC.

Binding Corporate Rules (BCRs): Developing BCRs (complex and time-consuming).

1. Data Protection Officer (DPO) Appointment: designate a DPO responsible for overseeing PIPA compliance. The DPO should have sufficient authority and resources.
2. Employee Training: Provide thorough training to employees on PIPA requirements and data privacy best practices.
3. Regular Audits: Conduct regular internal and external audits to assess compliance and identify areas for improvement.

The Role of the PIPC & recent enforcement Actions

The Korean Personal Information Protection Commission (PIPC) is the primary regulatory body responsible for enforcing PIPA. the PIPC has been increasingly active in recent years, demonstrating a commitment to protecting the privacy of Korean citizens.

recent Enforcement Examples (as of 2024/early 2025):

2024: A major international social media platform was fined for illegally transferring personal data to overseas servers without adequate safeguards.

2023: Several e-commerce companies were penalized for collecting excessive personal information from customers.

2022: A data broker was sanctioned for illegally collecting and selling personal information.

These cases highlight the PIPC’s willingness to impose significant penalties for non-compliance. Chinese manufacturers must take these actions as a serious warning.

benefits of PIPA Compliance

Beyond avoiding penalties, PIPA compliance offers several benefits:

Enhanced Reputation: Demonstrating a commitment to data privacy builds trust with Korean customers.

* Competitive Advantage: Compliance