KIM&CHANG
Newsletter | December 2016, Issue 4
TECHNOLOGY, MEDIA & TELECOMMUNICATIONS
KCC Proposes Key Amendments to the Location Information Act
On September 23, 2016, the Korea Communications Commission (“KCC”) announced proposed amendments to the Act on the Protection and Use of Location Information (“Location Information Act”).
The amendments were proposed as a response to criticism that the current Location Information Act was insufficient to deal with technical developments and global trends reflecting the increased use of location information, such as Internet of Things (“IoT”). With the amendments, the KCC aims to streamline regulations, and strengthen protection of location information.
As with the proposed amendments to the Network Act, the KCC accepted opinions from various industries until November 2, 2016. It is also in the process of finalizing the proposed amendments to the Location Information Act.
Key Amendments
1. Streamlining Entry Regulations for Location Information Businesses (Amended Act Article 5)
The Location Information Act has been criticized as being an entry barrier for new Location Information Businesses (“LIB’s”) that only collect object location information (i.e., location information not pertaining to an individual). Specifically, the current law was requiring such businesses to obtain the same license as businesses that collect personal location information.
Proposed Amendment: Relaxes such regulations by allowing LIB’s that do not collect personal location information to file a report with authorities (instead of obtaining a license).
2. Streamlining Consent Requirements for Object Location Information (Amended Act Article 15)
The current Location Information Act requires an object owner’s prior consent to collect, use or transfer the location information of an object, which posed practical difficulties.
Proposed Amendment: Allows for the collection, use, and transfer of an object’s location information without the owner’s prior consent.
3. New Rules on Delegated Processing and Overseas Transfer of Location Information (Amended Act Article 35-2(1))
The prevalent use of cloud and other similar services have increased the need for location information to be transferred overseas and processed by a delegatee.
Proposed Amendments:
Provide a legal basis for delegating the processing of location information, and defines: (i) the legal obligations of the delegator to manage, oversee and train the delegatee; (ii) the delegator’s liability for damages; and (iii) the legal basis for sub-delegation (Amended Article 16-2).
Also permit overseas transfer of location information subject to the location information owner’s prior consent.
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Dong Shik Choi
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Hyun-Kyu Lee
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