A Study on the Activation of Personal Information Protection Insurance

In the information age, personal information of citizens is recognized as a critical asset in corporate management. A recent data breach incident involving SK Telecom in South Korea resulted in the leakage of personal information of approximately 27 million users. The estimated damage amounts to several hundred billion Korean won, making it one of the most significant hacking incidents in the nation's history with far-reaching societal repercussions. Such personal data breaches should not be regarded merely as isolated incidents involving the leakage of user information. Rather, they must be understood as disaster-level events in which a company's main servers are compromised, leading to the mass leakage of sensitive data from a vast number of users all at once. To prepare for such nationwide disasters, the utilization of insurance systems is necessary. In South Korea, current laws mandate certain companies to subscribe to insurance policies aimed at strengthening personal information protection. However, the frequent amendments to the eligibility criteria stipulated in the Enforcement Decree of the Personal Information Protection Act have caused considerable confusion among businesses. As the use of personal data continues to grow, the issue of personal information infringement is no longer a matter solely for corporate response, but a serious policy challenge that requires direct attention and intervention from the government. This study examines cyberattacks, which represent one of the most prominent forms of future personal data breaches, and investigates the insurance systems currently implemented to address such incidents, along with relevant legal frameworks. In doing so, this paper conducts a comparative analysis of domestic and international insurance systems, legal regulations, and policies, with the aim of proposing effective strategies to promote the adoption and development of personal data protection insurance.