The Financial Services Commission outlined plans to develop dedicated standards for calculating penalties under the Act on Use and Protection of Credit Information, aiming to make sanctions more proportionate and predictable. The review found that the general framework applied across financial sectors does not adequately reflect the characteristics of personal credit information violations. The current system calculates a basic penalty from a statutory ceiling of 3% of total revenue, using severity rates of 50%, 75% or 100% before adjustments. The proposed approach would introduce more granular rates and assess factors such as the nature and type of personal credit information, the number of affected data subjects and the harm caused. It would also support heavier penalties for violations with substantial social impact while considering adjustments that encourage preventive controls and consumer remediation. The Financial Services Commission and Financial Supervisory Service plan to gather industry views, finalize the calculation standards and proceed promptly with related regulatory amendments.
2026-09-16South Korea Financial Services Commission
South Korea's Financial Services Commission sets direction for overhaul of credit information penalty calculations
The Financial Services Commission plans dedicated standards for calculating penalties under the Act on Use and Protection of Credit Information. The framework would replace broad severity bands with more granular rates and factors reflecting the data involved, affected individuals and resulting harm. Related regulations will be amended after industry input.