EU–Korea Mutual Adequacy Decision Takes Effect: A Milestone for Cross-Border Data Transfers
On September 16, 2025, a landmark agreement between the European Union (EU) and the Republic of Korea came into effect, allowing personal data to flow freely between the two jurisdictions without additional compliance requirements. This development follows Korea’s recognition of the EU’s personal data protection framework as "equivalent" to its own, completing a mutual adequacy arrangement that builds on the EU's 2021 adequacy decision for Korea.
This move significantly strengthens the digital and economic partnership between the two regions and underscores their shared commitment to upholding fundamental rights, including the right to data protection.
What Is an Adequacy Decision?
An adequacy decision is a legal mechanism under the EU’s General Data Protection Regulation (GDPR) that allows for the unrestricted transfer of personal data from the EU to a third country whose legal framework ensures an essentially equivalent level of data protection.
Until now, Korean businesses and public institutions were required to obtain individual consent or meet other legal safeguards when transferring personal data to the EU. With the new mutual adequacy in place, these additional steps are no longer necessary, streamlining operations and reducing legal complexity for companies on both sides.
What the Mutual Adequacy Means in Practice
With this equivalency recognition now in force, Korean corporations and public institutions can transfer personal data—including employee and customer data—to the EU without the need for consent or additional legal instruments. This applies to a wide range of transfers, including:
Direct provision of personal information
Remote access to data
Outsourced data processing
Cloud storage in EU-based services
However, it’s important to note that resident registration numbers and personal credit information are excluded from this arrangement and remain subject to additional safeguards.
The recognition also extends to 30 countries: the 27 EU member states and the three European Economic Area (EEA) countries — Norway, Liechtenstein, and Iceland.
Legal and Economic Impacts
This decision was made possible following Korea's September 2023 amendment to the Personal Information Protection Act (PIPA), which introduced the equivalency recognition system. The EU became the first jurisdiction to be recognized under this system, reinforcing its global leadership in data protection.
Chairperson Ko Hak-soo of Korea’s Personal Information Protection Commission (PIPC) stated that this recognition affirms the EU's data protection standards as “substantially the same as Korea’s.” EU Commissioner Michael McGrath echoed this sentiment during the Global Privacy Assembly (GPA) in Seoul, highlighting the decision’s role in fostering global trust in digital cooperation.
From an economic perspective, the Korea Internet & Security Agency (KISA) estimated that this adequacy arrangement could increase trade by up to $32.9 billion (approx. 45 trillion won). Long-term benefits could include up to a 0.326% increase in production and a 0.274% improvement in national welfare, underscoring the strategic significance of this digital alliance.
Stronger Global Collaboration on Privacy, AI, and Digital Trust
Beyond economic gains, the mutual adequacy framework lays the foundation for deeper collaboration on global data protection standards, artificial intelligence (AI), and digital governance.
Commissioner McGrath emphasized that the EU’s AI Act was designed to work hand-in-hand with the GDPR, using a risk-based approach to enable innovation while protecting citizens. He noted that Korea and the EU now share a platform for shaping global digital policy, contributing to a more secure and trusted digital environment.
At the GPA, McGrath also referenced upcoming EU initiatives, including a "Democracy Shield" to address cyber threats and a Media Freedom Act aimed at safeguarding editorial independence—linking data privacy to broader democratic values.
Review Timeline and Future Safeguards
The adequacy recognition is effective immediately as of September 16, 2025, and will be reviewed before its expiration on December 15, 2028. If it's found that the level of data protection has declined or if issues arise—such as misuse of transferred data or security breaches—the recognition may be amended or revoked. The PIPC has the authority to suspend data transfers in cases of serious concern.
This regulatory flexibility ensures the framework remains robust and adaptive to evolving risks, especially in the fast-moving digital and AI landscapes.
A Strategic Digital Alliance
The mutual adequacy decision between the EU and South Korea represents far more than a technical legal change—it marks a strategic digital alliance that supports trade, research, innovation, and a globally respected standard for data protection.
As Chairperson Ko stated, “As Korea and the EU have established a safe and free data transfer framework across all private and public sectors, data cooperation will be further strengthened going forward.”
With this agreement in place, businesses and consumers alike can look forward to greater efficiency, stronger protections, and expanded international collaboration in the digital age.
