Court-brokered mediation failed in a damages lawsuit filed by victims of a data breach at matchmaking company Duo. Observers cite as reasons that Duo filed an administrative suit challenging the Personal Information Protection Commission (PIPC)'s sanctions and that the victims demanded 1 million won per person in damages for emotional distress.
According to legal sources on the 18th, the Seoul Central District Court held a mediation session on the 24th for a damages suit filed by 46 victims of Duo's data breach against the company, but the sides did not reach a settlement. The case has returned to a trial on the merits, with the first hearing set for Oct. 28.
◇Duo files administrative suit challenging PIPC action
On the 26th of last month, Duo filed an administrative lawsuit challenging the 1.2 billion won penalty surcharge and corrective order imposed by the Personal Information Protection Commission (PIPC). Analysts say it would have been difficult to accept mediation premised on civil liability while contesting in court whether the PIPC's sanctions were appropriate.
Duo is not the only case where administrative sanctions and civil suits over a data breach are proceeding simultaneously. At the first hearing in March in a data breach damages suit, Coupang also raised the possibility of challenging the PIPC's action and argued the civil trial should not be rushed. In June, the PIPC imposed a 624.6 billion won penalty surcharge on Coupang, and Coupang said it would pursue legal action.
◇Claiming 1 million won per person; additional suits by 1,072 also weigh
The amounts claimed by the victims are also cited as a reason mediation failed. The plaintiffs are seeking 1 million won per person in damages for emotional distress. That is high compared with past data breach cases where about 100,000 to 300,000 won per person was recognized.
The victims cite the sensitivity of the leaked information. According to the Personal Information Protection Commission (PIPC), data potentially exposed included not only names, ages and contact information but also marital history, reasons for divorce, length of marriage, names of former spouses, number of children, and personality and disposition—information closely tied to private life. LKB Pyungsan, which represents the case, said, "Very sensitive information was leaked from Duo."
Follow-on suits also weigh on Duo. The current mediation covered the first suit filed by 46 victims, followed by a second suit with 455 participants and a third with 571. The plaintiffs now total 1,072, and if each claimed 1 million won, the simple aggregate claim comes to 1.072 billion won. If Duo had accepted a certain level of responsibility or compensation in the first mediation, it could have significantly affected the subsequent suits.
◇Damages to be decided at trial on the merits
At the trial on the merits in October, the key issues are expected to be whether Duo properly fulfilled its duty to implement safety measures to protect personal information and whether 1 million won per person in damages for emotional distress is appropriate.
A legal source said, "The claimed amount is not automatically recognized just because personal information was leaked," adding, "Liability and the amount of compensation will be determined by comprehensively considering the sensitivity and scope of the information, the company's managerial negligence, and the victims' emotional harm."