On June 12, 2017, South Korea’s Communications Commission announced that it joined the Asia-Pacific Economic Cooperation (“APEC”) Cross-Border Privacy Rules System (“CBPR”), a voluntary initiative that helps protect information transferred among the participating APEC member countries.

The Communications Commission stated that in an age of globalization, where personal information frequently moves across borders, people have become increasingly concerned about the safety of that information.  This is especially true when the level of protection varies from country to country.  Recognized advantages of participating in the CBPR system include that it standardizes and strengthens the level of protection around personal data and also secures from foreign companies and consumers international confidence in Korean companies.

The CBPR system was established as a voluntary accountability-based system that breaks down barriers to information flow, facilitates secure data transfers, and ensures continued trade in the APEC region.  To participate in the system, countries must (1) complete a self-assessment of their data privacy policies and practices, (2) submit themselves to a compliance review by an APEC-recognized Accountability Agent (a public or private entity authorized by APEC to review and certify participating organizations’ privacy policies and practices), (3) draft a directory of all organizations that have been certified as compliant with the CBPR system, and (4) establish a regulatory arrangement to ensure that the requirements of the CBPR system are enforced.

The member countries pledge to endorse nine guiding principles that underpin the APEC privacy framework: (1) preventing harm to individuals by misuse of data, (2) providing notice about what information is collected and for what purpose, (3) limiting collection of personal data, (4) limiting use of personal data, (5) providing individuals with a choice about the collection and use of their data, (6) maintaining the integrity of personal data, (7) employing security safeguards, (8) allowing individuals the ability to access and correct information, and (9) maintaining accountability for complying with security measures.

South Korea will join four member economies already participating in the APEC CBPR system:  the United States, Japan, Canada, and Mexico.