2. Business Model Legality/ Regulatory Approval Investigation

Q10 (Necessity of Privacy Policies)

Why is a privacy policy necessary?

By setting forth its stance on the protection of personal information, a company can provide peace of mind to customers, thus contributing to the expansion of its business. Also, since the enactment of the Act on the Protection of Personal Information, companies have adopted privacy policies to comply with the law.

Under the Act on the Protection of Personal Information, whenever a business handling personal information obtains personal information, it must promptly notify the person of its purpose of use or post it, unless it has already posted its purpose of use beforehand. In addition, for any personal data in its possession, the company must also take measures so that the person will know certain matters, such as the name of the entity possessing the information, the purpose of use and procedures for disclosure to third parties. As a way to comply with these obligations, it has become customary for companies to establish privacy policies and post them on their websites or otherwise deliver them to their customers.

(Posted: January 27, 2012)