Korean government unveils proposal for tougher penalties on data leakersUpdated: 2014-02-10 PM 9:57:43 (KST)
The ruling Saenuri Party and government financial agencies have unveiled a proposal for a set of preventative measures against future data leaks.
This, as the nation continues to cope with the fallout from the massive leak of personal information from the country's three major credit card companies last month.
The proposed plan strengthens the penalties on financial institutions found guilty of leaking or illegally distributing client information to third parties.
Under the plan, those found guilty of leaking information would face up to 10 years in prison or a fine of 470-thousand U.S. dollars.
That's three years longer and 10-times the amount of the current penalties.
In addition, those found guilty of using client data to enhance their business activities would be forced to pay a fine that's equivalent to up to one percent of their net sales.
Going forward, financial companies and institutions would be required to delete client data within five years of a client's last transaction.
The proposal must now go through the National Assembly, but if passed will be implemented in the second half of the year.
Last month's information leak was the third largest in global history with 104 million people affected.
The leak prompted more than two and a half million people to cancel cards or have them reissued.
Yoo Li-an, Arirang News.
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