Data Privacy Issue, Worldcoin Fined IDR 12 Billion By South Korean Government

WLD token from Worldcoin. (Photo; Doc. CryptoWallet)

JAKARTA - Data privacy cases are in the spotlight in the tech industry, and this time the Worldcoin crypto project stumbled on a big problem in South Korea. The South Korean Personal Information Protection Commission (PIPC) has just imposed a fine of 1.1 billion won or about $830.000 billion) to Worldcoin and its parent company, Tools For Humanity (TFH).

According to CoinSpeller, the fine is related to violations of the country's data privacy laws, particularly regarding the collection and use of biometric data, such as eye-slicing scans, conducted by Worldcoin.

The Commission found that Worldcoin did not provide users with adequate information about the purpose and duration of their biometric data storage. Before March 22, Worldcoin also failed to provide approval forms in Korean, violating local rules on the protection of personal information.

Worldcoin violations and sanctions, known for the creation of digital identity "World IDs" based on scanning eye slices for user verification, were fined USD 725 million or approximately USD 545,000 (IDR 8.17 billion). This violation includes improper sensitive data handling and transferring it abroad without sufficient transparency. Meanwhile, TFH was fined USD 379 million won or approximately USD 285,133 (IDR 4.28 billion) for failing to comply with the data transfer protocol.

Regulators highlight that Worldcoin and TFH did not provide users with clear information about where their data was sent and who was the recipient of the data, in accordance with South Korean law. In addition, Worldcoin also does not provide an option for users to apply for the deletion of their biometric data, which is one of the highlights of the breach.

The results of Worldcoin's Investigation and Response Although violations were found, PIPC did not prohibit Worldcoin from continuing its data collection practices. However, Worldcoin is expected to comply with local privacy regulations in order to remain operational in South Korea. The investigation, which began in February 2023, has now been completed, with demands for Worldcoin to improve its personal data management.

TFH stated that it "welcomes well" PIPC's decision and recognizes any shortcomings in initial disclosures regarding privacy in South Korea. However, the company also mentioned that the matter had been resolved.