Science minister vows punitive fines against companies with repeated security breaches
Science Minister Bae Kyung-hoon speaks during a briefing to President Lee Jae Myung in Sejong, Friday. Yonhap
Science Minister Bae Kyung-hoon said Friday the government will seek to introduce punitive fines on businesses with repeated data breaches amid growing concern over personal information security.
Bae made the remark during the Ministry of Science and ICT's policy briefing to President Lee Jae Myung in the central city of Sejong.
"We aim to establish a stern responsibility-based system by imposing punitive fines on businesses that suffer repeated security breaches," Bae said.
"The government will bolster its data security capability and stand with the people to launch an all-out war against hacking attacks," he added.
The plan came in the wake of data breaches reported by businesses this year, including cases at SK Telecom, KT and e-commerce giant Coupang, affecting most Koreans.
In detail, the ministry said it will seek to codify the responsibility of chief executive officers under relevant laws and strengthen the authority of chief security officers.
Companies with repeated security breaches will face fines of up to 3 percent of their annual sales, the ministry said, noting that the Personal Information Protection Commission is in the process of raising the ceiling.
Fines for delayed reporting to authorities in the event of a breach will be increased to 50 million won ($339,000) from the current 30 million won.
"To encourage the market to avoid businesses with poor security controls, the government will adopt a policy to assess companies' security capabilities and disclose the results to the public," the ministry said in a report.
On the global race for leadership in the artificial intelligence (AI) sector, the science minister said the country will work to develop one of the world's top 10 AI models next year.
The model will be released as open source for use in areas such as defense, manufacturing and culture, he added.
Bae noted the ministry will implement the so-called K-Moonshot project, which will center on research initiatives that carry high risks but are vital for the country's future.
Under the goal, Korea will aim to reach a technology level of 85 percent of that of the most advanced nation, the United States, by 2030. The ministry estimated the country's level at 81.5 percent in 2022.
"We will make efforts to secure core technologies in areas including humanoids, next-generation chips, rare earth materials and affordable clean energy, which are regarded as sectors with high risks but significant potential outcomes once successful," Bae said.
The government will additionally invest a separate 5.9 trillion won (US$4 billion) in strategic areas, including bio, quantum and nuclear fusion projects, while accelerating their commercialization, according to the minister.
In a separate document submitted to the president, the ministry said basic science research projects will account for 10 percent of the government's research and development (R&D) budget.
The government plans to develop a private sector-led small modular reactor by 2030 and establish a growth strategy backed by a 1.2 trillion-won budget.
It also aims to make Korea an AI hub in the Asia-Pacific region by attracting competitive experts and startups.
The ministry noted the government will strengthen its physical AI capabilities in manufacturing, logistics, shipbuilding and other industries.
South Korea will pursue AI research cooperation with the U.S., while seeking collaborative ties with China in robotics and drones, it added.