South Korea Fines Worldcoin for Data Violations

South Korea’s Personal Information Protection Commission (PIPC) has fined Worldcoin and its development firm, Tools For Humanity, a total of 1.1 billion Korean won ($830,000) for alleged violations regarding personal data collection and transfer.

Violations Noted by PIPC

The PIPC stated that the Worldcoin Foundation failed to adequately inform individuals about the purpose and duration of holding their scanned iris data. Notably, prior to March 22, there was no Korean translation of the biometric data consent form provided.

The fines included:
– 725 million won ($545,000) imposed on the Worldcoin Foundation for mishandling sensitive information and transferring it overseas.
– 379 million won ($285,133) levied against Tools For Humanity for its failure in overseeing overseas data transfer processes.

The PIPC emphasized that the parties did not disclose critical information such as the destination country of the transferred personal data and the contact details of the recipient, as required by local regulations. Additionally, the foundation failed to provide a mechanism for subjects to request deletion of their iris data, and TFH lacked adequate age verification for users under 14 until April this year.

However, the PIPC clarified that it has not prohibited sensitive data collection in South Korea, provided Worldcoin addresses these issues. The investigation began in February this year.

About Worldcoin

Worldcoin, a project by Tools For Humanity co-founded by Sam Altman and Alex Blania, aims to create “World IDs” for individuals who scan their irises as a proof of identity. The initiative intends to mitigate potential negative impacts from AI technologies. Users receive WLD cryptocurrency, and the project claims to have over 6.7 million verified World IDs across more than 160 countries.

Worldcoin’s Response

In response to the penalty, Tools For Humanity stated that it “welcomes” the PIPC’s decision. They believe the investigation highlighted areas for improvement in their initial disclosures, which have since been addressed. The company asserts that its operations, including the use of the orb for verification of humanness, are now compliant with South Korea’s Personal Information Protection Act. They see this decision as resolving the country’s oversight of Worldcoin regarding regulatory compliance.