South Korea discusses reforming Credit Information Act fine standards

South Korean financial authorities are discussing reforms to the calculation methods for fines under the Credit Information Act. A task force, including representatives from the Financial Services Commission, the Financial Supervisory Service, and various financial associations, met to address issues regarding the proportionality of penalties.

Currently, fines can be calculated based on a company’s total revenue rather than revenue directly related to the violation, which critics argue makes it difficult to issue proportional sanctions. The proposed changes aim to refine the calculation standards by categorizing the severity of violations more granularly. This would allow for lighter penalties for minor infractions—similar to models used in the Personal Information Protection Act—while ensuring strict penalties for significant violations that have a high social impact.

The authorities are also considering factors such as the type of personal credit information involved, the scale of the affected data subjects, and the degree of damage. Additionally, the framework may include provisions to increase or decrease fines based on whether a financial institution proactively prevented information breaches or assisted in consumer damage recovery.