Korea Speeds Data Privacy Law Revision Amid AI Industry Concerns

**AI PRISM* Customized Economic Briefing**

*Editor's note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an AI-based customized news recommendation and summary service developed with support from the Korea Press Foundation. It selects and provides six tailored news items by reader type.*

Bioplastics on the Rise: CJ CheilJedang (097950) is accelerating its global market push with PHA (polyhydroxyalkanoate), a material that fully biodegrades in soil and marine environments. With the EU banning petroleum-based artificial turf infill from 2031, demand to replace infill at approximately 50,000 European soccer fields is expected to surge starting this year.

Chinese Tech's MWC Offensive: Chinese company Honor showcased a humanoid robot performing back tumbles and a robot phone capable of 360-degree rotating photography at MWC 2026, demonstrating technological advancement. Chinese companies participating in this year's MWC totaled 350, up 21.5% from last year. Their strategy to establish Europe as a key forward base for advanced technology amid US-China tech rivalry is becoming increasingly clear.

Strengthened Data Privacy Regulations: The government and ruling party are pursuing second-stage amendments to the Personal Information Protection Act that would significantly strengthen corporate liability for damages following the introduction of punitive fines for data breaches. The second revision includes high-intensity regulations such as removing "intentional or negligent" clauses from statutory damage requirements and introducing data preservation orders, heightening tension across the ICT industry.

1. "PHA Decomposes in Soil and Ocean... Aiming for Global No.1 Within 3 Years"

In an interview with Seoul Economic Daily, Jeong Hyuk-sung, Head of CJ CheilJedang's BMS (Biomaterials) Division, announced the goal of achieving global leadership in biodegradable plastic PHA within three years. Unlike PLA (polylactic acid), PHA offers the advantage of complete biodegradation in both soil and marine environments; however, its price—roughly twice that of PLA—is cited as a barrier to market expansion. CJ CheilJedang is developing innovative processes to reduce PHA prices to PLA levels, actively leveraging fermentation expertise accumulated through its amino acid business. Meanwhile, aligned with EU regulations on petroleum-based materials, the company is rapidly securing global customers including Swedish artificial turf infill suppliers, Japan's ITOCHU Corporation partnership, and coffee chain contracts in the US and domestically.

2. Competition Heats Up in Respiratory Treatment Market as Lung Function Tests Become Mandatory

With pulmonary function tests (PFT) officially added to national health screening items this year, competition among pharmaceutical companies over the chronic obstructive pulmonary disease (COPD) treatment market has intensified. Citizens aged 56 and 66 will now have opportunities to detect respiratory diseases including COPD early through screenings, with explosive growth in treatment demand anticipated. According to market research firm Spherical Insights, Korea's respiratory treatment market is projected to grow from approximately 1.8 trillion won in 2024 to roughly 4.7 trillion won by 2035. Korea United Pharm is pursuing the launch of an asthma and COPD treatment in June, while Hanmi Pharmaceutical (128940) has begun distribution of a COPD treatment through a joint sales agreement with Boehringer Ingelheim, demonstrating accelerated activity among major pharmaceutical companies.

3. ICT Industry Calls Privacy Law Revision "Excessive and Regressive"

The government and ruling party are swiftly pursuing second-stage amendments to the Personal Information Protection Act that would strengthen corporate liability for damages following the introduction of punitive fines for data breaches. The second revision includes high-intensity regulations such as removing "intentional or negligent" clauses from statutory damage requirements, establishing new penalties for illegal distribution of leaked personal information, introducing data preservation orders, and imposing enforcement fines for non-cooperation with investigations. The Korea Internet Corporations Association (KICA) protested that "in large-scale traffic environments, perfectly tracing accident causes is often technically impossible," calling it excessive regulation that imposes no-fault liability on companies. Professor Lim Gyu-cheol of Dongguk University noted, "If passed, this revision would constrain data utilization—the core of AI development—directly contradicting the government's AI promotion policies."

4. Somersaults Standard, Self-Rotating Robot Phones... Chinese Tech Offensive

Chinese company Honor showcased a humanoid robot performing high-difficulty movements including back tumbles and moonwalks, along with a robot phone that automatically recognizes subjects for 360-degree rotating photography at MWC 2026, demonstrating one year of technological progress. Chinese companies participating in this year's MWC totaled 350, up 21.5% from 288 last year, making China the third-largest participating country after Spain and the US. Chinese companies including China Mobile's robot restaurant and Agibot's humanoid calligraphy demonstration are competing to present technologies combining mobile infrastructure with robotics, positioning Europe as a key forward base. Meanwhile, Korean companies are mounting responses: LG U+ (032640) showcased robots equipped with AI agent 'ixi-O,' KT (030200) presented robot platform 'K-RaaS (KT Robot as a Service),' and Samsung Electronics (005930) unveiled AI-based autonomous manufacturing systems.

5. Sungkyunkwan University Launches AI Finance Research Institute Amid Stablecoin Rise

Sungkyunkwan University has launched an 'AI Finance Research Institute' to conduct research converging AI and fintech. The rapid growth of stablecoins (virtual assets pegged to fiat currency values) serves as the backdrop. According to market research firm Artemis Analytics, global stablecoin transaction volume exceeded $33 trillion last year. Bloomberg Intelligence projects global stablecoin payment volume will reach $56 trillion by 2030. Additionally, the Democratic Party's Digital Asset Task Force plans to propose second-stage digital asset basic law legislation early this month. Major Korean universities including Korea University's Next Intelligence Committee, Seoul National University's AI Committee, and Yonsei University's AI Fintech major are successively establishing or expanding AI-related organizations.

6. Korea SMEs and Startups Agency Upgrades Digital Training Platform with "AI-Based Job Training Recommendations"

The Korea SMEs and Startups Agency (KOSME) has overhauled its digital training platform with strengthened AI-based customized learning services. New features include course recommendations reflecting learners' backgrounds and characteristics, linked course notifications, and 24-hour AI chatbot consultation. Combined with a reorganized job-centered classification system, company-customized digital training institute services, and an online facility rental system, learning management convenience for SMEs has improved. The platform also provides subtitle functionality in 16 languages, expanding support to companies expanding overseas and foreign workers to utilize training content.