User consent required for each advertisement... "Concerns over domestic companies being unfairly disadvantaged"

As the government prepares to regulate online personalized advertising, voices of concern about market contraction are emerging within the online advertising industry. There are claims that ongoing lawsuits by Google and Meta could lead to reverse discrimination against domestic companies.

The Personal Information Protection Commission (PIPC) is set to announce the "Guidelines for Processing Behavioral Information in Online Personalized Advertising." The core of the guidelines is reportedly that portals and social media (SNS) platforms must obtain user consent regardless of login status before delivering personalized ads based on past purchase or search history. Since last year, the PIPC has held over ten private meetings to gather industry opinions. After a grace period, the guidelines are expected to be fully enforced starting next year.

[Photo by Pixabay]

Businesses believe that once the guidelines are fully applied, a contraction of the online advertising market is inevitable. Users will have to respond to consent requests individually, and realistically, many are likely to reject personalized ads. While the industry agrees with the necessity of protecting personal information and the intent of the guidelines, they emphasize the need for careful consideration.

An industry insider said, "Users will refuse, advertisers will reduce personalized ads, and the personalized advertising market will shrink. Large businesses will avoid outsourcing and instead advertise to visitors on their own websites, causing the market to concentrate around major platforms."

Another industry representative stated, "We naturally agree with the purpose of protecting personal information, but the aspects that impact the industry must be carefully reviewed."

There is particular concern that domestic businesses will shrink while overseas companies expand their market influence. Google and Meta filed administrative lawsuits in March challenging the PIPC’s sanctions for illegal personal data collection. Last September, the PIPC imposed fines and corrective orders on Google and Meta for violating the Personal Information Protection Act by collecting personal data without user consent and using it for online personalized advertising. The fines were 69.2 billion KRW for Google and 30.8 billion KRW for Meta. Since Google and Meta are currently litigating over personalized advertising, they are likely to disregard the guidelines until the court’s final decision. If the lawsuit prolongs, only domestic companies that comply with government policies will suffer losses.

An industry source said, "Regardless of the guideline contents, it is obvious that Google and Meta will not comply." They added, "Google and Meta have filed administrative lawsuits related to personalized advertising, so following the newly announced guidelines would be tantamount to admitting wrongdoing. While the lawsuits proceed, domestic companies will follow the guidelines, but Google and Meta will maintain the current system, likely exacerbating reverse discrimination against domestic firms."

This content was produced with the assistance of AI translation services.