South Korea penalizes Worldcoin for violating personal data protection regulations.
South Korea's personal information authority has fined the Worldcoin Foundation and its affiliate, Tools For Humanity (TFH), 1.1 billion Korean won (approximately $829,000) for breaching the country's personal information protection laws.
In a plenary session on September 25, the Personal Information Protection Commission (PIPC) announced the fine for violations of the Personal Information Protection Act (PIPA).
In addition to the monetary penalty, the regulator has issued corrective orders and recommendations for improvements to the Worldcoin Foundation.
The PIPC initiated its investigation in February after receiving complaints that the company might be collecting biometric data in exchange for cryptocurrency.
Following the investigation, the privacy watchdog confirmed that both the Worldcoin Foundation and TFH collected information, including iris scans from South Koreans, without a legal basis for processing such data.
The PIPC reported that nearly 100,000 South Koreans downloaded the Worldcoin app, with about 30,000 utilizing iris authentication. However, the organization found that the company did not meet the PIPA requirements.
The regulator explained that when the Worldcoin Foundation gathered biometric data, it failed to inform users about the purpose of data collection and the retention period, as mandated by law. The PIPC also emphasized that the company did not notify users about the transfer of their data to foreign entities.
Under PIPA, companies are required to disclose where personal information is sent and provide the names and contact details of the receiving parties.
Additionally, the PIPC noted that the company lacked a procedure for users to request and process the deletion of sensitive data.
Furthermore, the watchdog highlighted that TFH did not implement adequate age verification procedures to prevent children under 14 from registering on the application.
In response, TFH welcomed the regulator's findings, describing them as the result of constructive dialogue between the regulator and the company. Damien Kieran, chief privacy officer of TFH, stated, "We are pleased with the PIPC's findings, which affirm our strong commitment to user privacy and data protection. This outcome stems from months of fruitful discussions and illustrates that innovation and regulatory compliance can coexist."
Despite the challenges faced in South Korea, the project’s native token has shown notable gains this week.
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