South Korea’s Personal Information Protection Commission (PIPC) has imposed a fine of 1.1 billion Korean won ($830,000) on Worldcoin and its developer, Tools For Humanity, over alleged personal data collection and transfer violations.
According to the regulators, the Worldcoin Foundation failed to properly inform individuals about their scanned iris data’s purpose and retention period. They stated that the Worldcoin Foundation and TFH did not comply with local laws requiring them to inform individuals of the destination country for their data and provide the recipient’s name and contact details. Additionally, before March 22, the project did not offer a Korean translation of its biometric data consent form, further breaching compliance regulations.
The report noted that the Worldcoin Foundation was fined 725 million won ($545,000) for mishandling sensitive data and transferring it overseas. At the same time, Tools For Humanity (TFH) faces a 379 million won ($285,133) penalty for failing to properly oversee the data transfer.
They also stated that the Foundation failed to establish a mechanism for individuals to request the deletion of their iris data. Additionally, Tools For Humanity (TFH) did not adequately verify the age of any signatories under 14 until April of this year.
The PIPC clarified that it has not banned sensitive data collection in South Korea, provided that Worldcoin addresses the identified issues.
Worldcoin, developed by Tools For Humanity, issues “World IDs” to individuals who scan their irises using an Orb device to verify their identity. This initiative aims to protect users from the potential adverse effects of AI.
This is not the first time Worldcoin has faced scrutiny, as Hong Kong’s Office of the Privacy Commissioner for Personal Data (PCPD) issued an enforcement notice in May demanding the project cease all regional operations. The action follows significant findings of data privacy practices and consent protocol lapses. In its statement, the privacy watchdog revealed that its investigation concluded that Worldcoin’s operations violated the Personal Data (Privacy) Ordinance (PDPO).
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