Paper Trail Exposed: 11 Giants, Including Microsoft and Temu, Named in Suspected Shell Company Scandal
Global Companies Evading Responsibility for Protecting Domestic Users
Park Chung-kwon, a member of the People Power Party and the National Assembly Science, Technology, Information, Broadcasting and Communications Committee, has raised concerns that 11 global companies, including Microsoft and Temu, are evading their duty to protect domestic users by designating entities suspected of being paper companies as agents.
According to the Korea Communications Commission, 26 out of 39 global companies with an obligation to designate agents have designated law firms or separate corporations other than their domestic corporations as domestic agents. This has raised concerns about the effectiveness of the domestic agent system, which was implemented in 2018 to protect the rights of domestic users and strengthen the responsibility of business operators.
Among the 11 companies, including Microsoft, Nike, Temu, and Zoom, designated a separate legal entity called a “general agent” as their domestic agent. However, an on-site inspection by the Korea Communications Commission revealed that the legal entity had only three employees, and even among them, only one was a full-time employee.
Furthermore, it was confirmed that the ‘general agent’ was handling complaints and providing relief for damages related to personal information of 11 companies in a formal manner, such as only sending emails via ARS. Despite receiving a recommendation for improvement from the Korea Communications Commission, no corrective action has been taken to date.
Rep. Park expressed concerns that global companies may appoint non-existent corporations as agents, and when problems arise, the parent companies may escape the law without any responsibility. He added that he will prepare a bill that would require domestic corporations to be designated as agents so that the system for personal information protection can be operated effectively.
