KT Corp's Gwanghwamun Building West. [Provided by KT Corp]
KT Corp's Gwanghwamun Building West. [Provided by KT Corp]

Amid a recurring cycle of fines and administrative lawsuits stemming from personal data breaches, law firm Sejong draws attention.

The firm participated in the deliberation and resolution process for the fine imposed on KT Corp — following its earlier involvement in the record-breaking fine against Coupang Inc. Particularly notable is that Yun Jong-in, the inaugural chair of the Personal Information Protection Commission, serves as an adviser at Sejong, fueling industry speculation that the firm was retained in hopes of preferential treatment for former officials.

Sejong participated in the deliberation and resolution process for the 53.98 billion won ($37.2 million) fine the Personal Information Protection Commission imposed on KT Corp on Thursday. As assessments emerged that "KT got off lightly," attention turned to Sejong's role.

In practice, the fine imposed on KT amounted to roughly 0.8 percent of its sales — lower than the rate applied to SK Telecom, which was fined 134.79 billion won, or about 1 percent of its sales. The comparison is particularly striking given that, even accounting for KT's relatively smaller scale of data exposure, the breach resulted in actual financial losses to customers of about 240 million won.

That disparity is why industry observers are questioning whether Sejong played a role in shaping the outcome of KT Corp's fine deliberation.

Should KT Corp pursue an administrative lawsuit, Sejong is widely expected to take the case, having led the company's defense during the deliberation and resolution process.

The commission has signaled that it will issue a separate penalty for the personal data breach caused by a malware infection, making it all but certain that KT Corp will file an administrative lawsuit — and that Sejong will take a leading role when it does.

For Sejong, landing KT Corp as a major client on the heels of Coupang Inc has cemented its standing in this space. On June 11, Coupang Inc received a 624.68 billion won fine from the commission, and Sejong took on the administrative lawsuit challenging the 423.57 billion won portion tied to violations of mandatory security measures.

[Provided by the Personal Information Protection Commission]
[Provided by the Personal Information Protection Commission]

Industry insiders widely interpret Sejong's retention as a bid to benefit from the influence of former commission chair Yun, who served as the inaugural Personal Information Protection Commission chair beginning in August 2020.

Commission Chair Song Gyeong-hui dismissed such concerns at a briefing on the Coupang Inc fine last month, saying the penalty was "a justified disposition reached after careful deliberation based on law and principle" and that the commission would "respond actively if a lawsuit is filed."

"Even if the scale of the data breach differs from other telecom carriers or platform companies, as the commission noted, this is a serious case that resulted in actual financial harm," an industry official said. "Given that a law firm whose adviser is the commission's first chair participated in the penalty adjustment process, there is no choice but to suspect preferential treatment for former officials."


ko@heraldcorp.com