The South Korean Supreme Court has ruled that illegal online casino operators who use stolen personal data can also be punished for data privacy violations.
The court’s first division dismissed an appeal from an unnamed man who had sought to challenge a district court verdict that found him guilty of violating the Personal Information Protection Act.
The man, who was also found guilty of operating a gambling site, had taken his case to the nation’s highest court after failing to overturn the district court ruling in the appellate courts.
The district court sentenced the man to serve a year in prison, the South Korean media outlet News1 reported.
In sentencing, the presiding Supreme Court Justice Seo Kyung-hwan said that firms that acquire or use personal information that has been illegally obtained through hacking must also be considered “personal information processors” in the eyes of the law.
I Only Used Data to Test My Site, Says Defendant
Prosecutors told the court that the man set up a gambling site in 2024 along with an accomplice.
The prosecution service explained that the accused “illegally obtained personal information” from another, unknown gambling site operator.
This tranche of data included the full names, bank account numbers, and mobile phone numbers of 796 customers from the other site.
The accused then used this data to carry out tests on his own site, including deposits, withdrawals, and game functionality.
Both the High Court and the Supreme Court rejected the defendant’s claims. The latter said that “no crime took place, because [his] site never went live.”
South Korean Supreme Court Rejects ‘Site Not Live’ Claim
The lower courts agreed that the deposit and withdrawal functions were operational at the time of the defendant’s arrest.
The Supreme Court also rejected the man’s claims that the site did not go live.
Prosecution officials told the court that platform users were in fact able to “access the site and play games such as baccarat and slots.”
They also presented evidence proving that “functions for depositing and withdrawing gambling funds were actually operating” at the time of the arrest.
Illegal gambling-related crime has dominated the headlines in South Korea this year. Youth gambling-related crime and addiction rates are both up, police have warned.
And sports stars, politicians, and celebrities have also faced scrutiny over gambling allegations. Four top baseball players have recently returned from lengthy suspension periods after gambling in Taiwan.
Under South Korean law, most forms of online gambling are illegal. The law also forbids South Koreans from placing bets in overseas land-based casinos.
