▲ Song Kyung-hee (L), chairperson of the Personal Information Protection Commission, reports her commission's work plan for the second half of this year at the presidential office in Seoul on July 16, 2026. (Pool photo) (Yonhap)

SEOUL, July 16 (Yonhap) -- The government will push to introduce a reward system for reporting personal information leaks and an integrated damage relief fund, the state data protection watchdog said Thursday.

In the event of a large-scale personal information leak, a dedicated investigation team will be formed to carry out a prompt investigation, the Personal Information Protection Commission (PIPC) said.

Companies found to be uncooperative with the investigation or to have concealed or destroyed evidence will face strengthened sanctions, the commission said.

The PIPC reported its work plan for the second half of this year, which includes these measures, at the presidential office on the day.

The watchdog said it will first overhaul the compensation system for victims of personal information leaks, amid criticism that direct victims receive insufficient compensation.

It will clarify the principles governing corporate liability for damages and strengthen the statutory damages system by requiring companies to prove they are not liable for personal information leaks.

In particular, the watchdog will discuss with the Ministry of Planning and Budget a plan to incorporate a personal information damage relief function into the public interest whistleblower incentive fund.

It will also push to establish an integrated fund with relevant ministries to use revenue from fines for damage relief and the restoration of victims' rights.

In addition, the investigation system will be completely overhauled.

For major cases involving the leakage of more than 1 million pieces of personal information, a dedicated investigation team will be formed to conduct intensive investigations and take action. A rapid processing procedure will be introduced for small-scale cases where criteria for action are relatively clear, the commission said.

The number of personal information leakage reports increased from 307 in 2024 to 447 last year, and 432 cases were reported in the first half of this year alone.

A new legal provision will be introduced to prohibit the distribution of personal information known to have been leaked and punish violators with up to five years in prison or a fine of up to 50 million won (US$33,710).

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