EU and South Korea complete adequacy talks

6. April 2021

On March 30th, 2021, EU Justice Commissioner Didier Reynders and Chairperson of the Personal Information Protection Commission of the Republic of Korea Yoon Jong In announced the successful conclusion of adequacy talks between the EU und the Republic of Korea (“South Korea”). These adequacy discussions began in 2017, and there was already initially a high level of convergence between the EU and the Republic of Korea on data protection issues, which has been further enhanced by additional safeguards to further strengthen the level of protection in South Korea. Recently, South Korea’s Personal Information Protection Act (“PIPA”) took effect and the investigative and enforcement powers of South Korea’s data protection authority, the Personal Information Protection Commission (“PIPC”), were strengthened.

In the GDPR, this adequacy decision is based on Art. 45 GDPR. Article 45(3) GDPR empowers the EU Commission to adopt an implementing act to determine that a non-EU country ensures an “adequate level of protection”. This means a level of protection for personal data that is substantially equivalent to the level of protection within the EU. Once it has been determined that a non-EU country provides an “adequate level of protection”, transfers of personal data from the EU to that non-EU country can take place without further requirements. South Korea will be the 13th country to which personal data may be transferred on the basis of an adequacy decision. An adequacy decision covering both commercial providers and the public sector will enable free and secure data flows between the EU and the Republic of Korea and it will complement the EU-Republic of Korea Free Trade Agreement.

Until the free flow of data can occur, the EU Commission must initiate the procedure for adopting its adequacy finding. In this procedure, the European Data Protection Board will issue an opinion and a committee composed of representatives of the EU member states must agree. The EU Commission may then adopt the adequacy decision.