South Korea Fines Worldcoin $830K for Mishandling Biometric Data

South Korea's Personal Information Protection Commission has fined Worldcoin and its development company, Tools for Humanity, 1.1 billion Korean Won, or $830,000.

The commission claims that Worldcoin violated rules while collecting and transferring personal data.Therefore, the results from failing to follow proper procedures when handling sensitive information.

Worldcoin Foundation Faces Fines for Mismanagement of Iris Data in South Korea

The Personal Information Protection Commission (PIPC) stated that the Worldcoin Foundation failed to adequately inform people why it collected iris data and did not say how long it would keep it.

Before March 22, the project did not offer a Korean translation of its consent form for collecting biometric data, making it harder for people in South Korea to understand what they were agreeing to fully.

Hence, the Protection Commission fined the Worldcoin Foundation 725 million won ($545,000) for mishandling sensitive information and transferring it abroad.

At the same time, regulators fined Tools For Humanity (TFH) 379 million won, around $285 133. This penalty was for failing to follow legal duties related to sending data overseas.

The regulators stated that the Worldcoin Foundation and Tools For Humanity failed to inform people about important details regarding their data. They did not tell users which country their personal information was sent to or who was receiving the data as required by local law.

Additionally, the Worldcoin Foundation did not offer a way for users to ask for their iris data to be deleted. TFH also did not correctly verify the age of users under 14 until April of this year.

This lack of care raised severe concerns about protecting sensitive data and following legal rules.

PIPC Allows Worldcoin's Data Collection with Conditions Following Investigation

The PIPC noted that it has not banned the collection of sensitive data in South Korea. However, Worldcoin must fix the issues found during the investigation.

Worldcoin is run by Tools For Humanity, a company co-founded by Sam Altman, the CEO of OpenAI, and Alex Blania.

The project uses an Orb device to scan people's irises, giving them World IDs" to prove they are human. The goal is to protect people from the possible adverse effects of AI.

According to Worldcoin's website, users receive WLD cryptocurrency after signing up. So far, Worldcoin has issued over 6.7 million verified World IDs in more than 160 countries worldwide.

Despite the penalty, Tools For Humanity expressed that it welcomes" the decision from South Korean regulators.

In a press release, TFH explained that the PIPC's investigation, which started in February, found weaknesses in their original information when they first launched in South Korea.

However, they stated that these issues have since been fixed. TFH believes the investigation's conclusion showed that all its operations complied with South Korea's Personal Information Protection Act.

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