The South Korean Personal Information Protection Commission (PIPC) announced this imposed a fine for Tools for Humanity, the developer behind the Worldcoin project, for violating local data privacy laws.
The commission announced that the company has been fined more than 1.1 billion Korean won (about $830,000) for allegedly mishandling personal data and violating data transfer rules abroad.
These violations primarily involved the collection and transmission of sensitive biometric data, particularly iris scans, without proper consent and notification.
More details on the matter
The PIPC announced in a press release uploaded on September 26 that Worldcoin did not adequately inform users of the purpose of collecting their iris data or the period for which this information would be retained.
In addition, the project had not provided a Korean translation of the consent form for biometric data collection before March 22, making it difficult for users in South Korea to understand what they were agreeing to.
This led to the project’s foundation being fined 725 million won (about $545,000) for mishandling sensitive information and the subsequent transfer of that data to foreign entities.
In addition, Tools for Humanity (TFH) was fined 379 million won (approximately $285,133) for failing to comply with local regulations regarding international data transfers.
The PIPC also detailed that Worldcoin and TFH failed to adequately disclose to users where their personal data was transferred and failed to provide details about the recipients, such as their name and contact information, as required by South Korean law.
Furthermore, the investigation found that Worldcoin had no established process for users to request the deletion of their iris data. It was also reported that Tools for Humanity had not sufficiently verified the ages of signers under 14 until April 2024, raising additional concerns about data privacy.
The catch and Worldcoin response
Despite these shortcomings, the PIPC announced in the press release that it has not imposed a complete ban on Worldcoin’s collection of sensitive biometric data in South Korea. The committee indicated that the project could go ahead data collection activities if the above issues are resolved.
Notably, the investigation into Worldcoin and TFH by the PIPC began earlier this year, the release said:
The Personal Information Protection Commission launched an investigation in February this year following complaints and media reports that “Worldcoin collects biometric information without consent in exchange for virtual assets (“Worldcoin”).”
In response to the ruling, TFH stated its willingness to comply and emphasized that it has done so ever since resolved the problems found by the supervisors.
In one press releasethe company stated that it “welcomes” the PIPC’s decision and emphasized that the identified weaknesses were related to the initial disclosures made when Worldcoin first launched in South Korea.
According to the company, this has emerged from the PIPC investigation Worldcoin’s activitiesincluding the use of their “Orb” device for verifying users’ identities, are now compliant with the country’s data protection laws.
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