Insights and Analysis
AI-washing – when AI hype becomes a litigation risk
Recent large‑scale data breaches across major sectors in Korea, including across the telecommunications, retail, and finance sector, have prompted swift and coordinated response from lawmakers and regulators. The National Assembly and relevant government agencies are advancing legislative amendments and updating regulatory measures to strengthen both the prevention of and the response to cybersecurity threats targeting critical networks and personal data.
These developments primarily concern two key statutes: the Act on Promotion of Information and Communications Network Utilization and Information Protection, etc. (the “Network Act”) and the Personal Information Protection Act (the “PIPA”). The Network Act applies to information and communications service providers (“ISPs”), a broad category that includes businesses that provide or mediate information through telecommunications networks, such as e‑commerce platforms, social media services, fintech operators, and mobile banking providers. The Ministry of Science and ICT (“MSIT”) administers the Network Act. In parallel, the PIPA governs the protection of personal data and is overseen by the Personal Information Protection Commission (“PIPC”).
Although the Network Act and PIPA are distinct frameworks with separate scopes and enforcement authorities, data breaches frequently trigger obligations under both regimes, since cybersecurity incidents often involve the compromise or leakage of personal information.
The proposed amendments focus on two principal objectives: improving data protection and security governance, including the strengthening of information management systems, and enhancing the effectiveness of incident response, investigations, and sanctions in the event of security incidents. We outline the nature and scope of the amendments and their implications in further detail below.
Proposed Network Act Amendments
Proposed PIPA Amendments
Proposed Network Act Amendments
Proposed PIPA Amendments
Recent announcements and publications from the Ministry of Science and ICT (MSIT) and the Personal Information Protection Commission (PIPC) indicate a clear and assertive regulatory direction for cybersecurity and personal data protection in South Korea in 2026.
MSIT’s Enforcement Priorities
The MSIT has designated the private sector’s handling of hacking incidents as a key focus of its 2026 Work Plan.1 The Ministry signals that it plans to:
PIPC’s Strategic Direction
The PIPC has recently set out five major strategic directions to reform South Korea’s privacy and data protection framework.2 These initiatives are designed to enhance deterrence, improve preventive measures, support responsible AI innovation, strengthen everyday privacy protections, and foster global trust in data systems. The PIPC’s investigation policy for 2026 highlights several key areas:
1. Effective Sanctions and Increased Investment in Protection
2. Proactive Prevention and Public–Private Sector Oversight
Both the MSIT and the PIPC have made it clear that enforcement efforts in 2026 will prioritize:
These developments signal the intention for an even more rigorous and proactive enforcement environment in South Korea, with heightened expectations for both private and public sector organizations to strengthen their cybersecurity and data protection frameworks.
The evolving legislative landscape reflects a decisive shift toward more proactive investigations, stricter oversight, and faster regulatory intervention. Companies are well advised to prepare for heightened scrutiny across both cybersecurity and personal data practices.
As regulatory obligations become increasingly calibrated to organizational size, data sensitivity, and risk exposure, businesses should clearly identify the requirements applicable to them and assess whether existing governance and compliance structures remain fit for purpose.
With accelerated breach notification timelines and broadened reporting duties on the horizon, companies may wish to revisit their incident response plans to confirm they are comprehensive, operationally realistic, and capable of ensuring timely compliance.
To avoid escalating penalties, particularly for repeat violations, organizations are well advised to conduct post-incident reviews, including to identify potential patterns or contributing factors across incidents, and implement corrective actions and enhancements that lead to demonstrable, sustainable improvements in their security posture.
The proposed amendments to Korea’s Network Act and Personal Information Protection Act represent a significant shift toward a more rigorous and proactive regulatory environment. Both the MSIT and PIPC are signalling their intent to hold organizations to higher standards of accountability, transparency, and preparedness in the face of evolving cybersecurity and data protection risks. Businesses operating in Korea should take this opportunity to review and enhance their governance, compliance, and incident response capabilities.
For further guidance on the impact of these changes, please reach out to the authors of this alert or your usual Hogan Lovells contact.
Authored by Charmian Aw, Paul Otto, and Ciara O'Leary.