Google and Meta Replace Domestic Agent
'Paper Company → Korean Corporation'
Effectiveness Concerns
Google and Meta, which had previously undermined the purpose of the system by appointing 'paper companies' as their domestic agents, have recently changed their domestic agents. A domestic agent is a company that handles user protection tasks in Korea on behalf of an overseas headquarters. The previous paper companies have been replaced with Korean branches or separate corporations, but even this is considered only a half-hearted implementation of the domestic agent system.
Half-hearted Domestic Agent System
Recently, Google changed its domestic agent from Transcosmos Korea to Google Korea. Meta established Meta Communication Agent Limited. This change follows the implementation of the so-called 'Google Agent Act' (an amendment to the Telecommunications Business Act) in May, which aims to prevent global businesses from evading responsibility by appointing irrelevant corporations instead of Korean branches as domestic agents.
The problem is that this change is only half-hearted. The domestic agent system is divided among three laws: the Telecommunications Business Act, the Information and Communications Network Act, and the Personal Information Protection Act. The recent domestic agent replacement applies only to the Telecommunications Business Act. Google and Meta still appoint paper companies as domestic agents under the Information and Communications Network Act and the Personal Information Protection Act. Since each ministry overseeing these laws has different standards and interpretations for appointing domestic agents, appointing paper companies is not considered problematic.
Google appoints a company called 'The Agent' as its domestic agent under the Personal Information Protection Act and the Information and Communications Network Act. Meta has designated a company called 'Privacy Agent Korea' as its domestic agent, but since it uses the same address as The Agent, it is effectively regarded as a paper company.
The ineffective domestic agent system can result in harm to users. When issues related to personal information arise, users end up contacting the paper companies appointed as domestic agents, making smooth resolution unlikely. For example, last year, the Personal Information Protection Commission conducted an investigation into whether companies' personal information collection practices were illegal, but Meta’s domestic agent did not participate. Instead, a domestic law firm responded to the investigation.
Need for Measures to Enhance Effectiveness
Although the amendment to the Telecommunications Business Act led to the replacement of domestic agents, loopholes still exist. The amendment aimed to enhance effectiveness by requiring the appointment of Korean branches as agents, such as 'Google Korea,' but Meta established a separate corporation called Meta Communication Agent. There are concerns that another paper company could be created. The Ministry of Science and ICT, the competent authority, does not separately monitor whether a company is a paper company but plans to impose sanctions if domestic agents fail to fulfill their legal obligations.
The Personal Information Protection Commission is also taking action. Its '2023 Work Plan,' announced last year, includes improvements to the domestic agent system for foreign companies. The plan aims to designate the existing domestic corporation of global companies as the domestic agent to effectively protect domestic users. Related legislative amendments are currently pending in the National Assembly.
Among information and communication service providers without an address or place of business in Korea, those who meet any of the following criteria must appoint a domestic agent: ▲annual sales of 1 trillion KRW or more in the previous year ▲sales of 10 billion KRW or more in the information and communication sector ▲an average daily number of users whose personal information is stored and managed for the last three months of the previous year of 1 million or more ▲companies requested to submit related goods and documents due to suspected violations of the Information and Communications Network Act. Failure to appoint a domestic agent when required results in a fine of up to 20 million KRW.
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