South Korea fines China's e-commerce giant Temu for user data violations
South Korea has fined Chinese e-commerce giant Temu nearly one million US dollars for illegally transferring Korean users' personal information to China and other countries, a data protection watchdog said Thursday.
Chinese platforms such as Shein, Temu and AliExpress have skyrocketed in global popularity in recent years, offering a vast selection of products at stunningly low prices that have helped them take on US titan Amazon.
Temu outsources and stores users' data with companies in several countries, including China, Singapore, South Korea and Japan, according to Seoul's Personal Information Protection Commission (PIPC).
But the company 'failed to disclose in its privacy policy or notify users that personal data would be entrusted to overseas entities,' it said in a statement.
The PIPC said it fined Temu around 1.39 billion won (US$997,624) for violating the data protection act.
The watchdog said Temu also failed to supervise overseas companies, including on data protection, and did not properly inspect their handling of personal information.
As of 2023, an average of 2.9 million users in South Korea were using Temu daily, but the company did not designate a local representative as required by South Korean data protection law, the watchdog said.
Temu also complicated the account deletion process with seven steps, making it 'difficult for users to exercise their rights', it added.
Temu respects the 'decision by Korea's Personal Information Protection Commission and cooperated fully with the investigation', a company spokesperson told AFP.
'We made improvements during the process to align with local requirements. We support efforts that promote consumer trust and strengthen data transparency,' they added.
Thursday's announcement comes weeks after the watchdog said Chinese artificial intelligence app DeepSeek was transferring personal data to a cloud services platform without users' consent.
South Korea has previously blocked downloads of DeepSeek and moved to restrict its use on government-linked devices.
The South Korean watchdog also fined AliExpress around 1.98 billion won last year for illegally transfering Korean users' data overseas.
And it fined social media giant Meta 21.6 billion won last year for illegally harvesting sensitive data including sexual orientation from nearly a million South Korean Facebook users and sharing it with advertisers.
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Asia Times
an hour ago
- Asia Times
Xi calls Trump's bluff and wins, time and time again
China's Xi Jinping and US President Donald Trump spoke over the phone Thursday (June 5), the first known formal contact of the Trump 2.0 era. Though signs of détente were few, the fact that the leaders of the world's two biggest economies are speaking at all marks progress. Essentially, the two presidents talked about talking more down the line to lower the temperature on tariffs and access to rare earth minerals. The exchange fueled hope on Wall Street that a trade war truce might be in the cards. 'The US and China appear to have stepped back from their latest brink,' says analyst Bill Bishop, who writes the Sinocism newsletter. 'Trump and Xi finally had their call, the Geneva 'truce' may be back on track, and to listen to Trump, the [China] halt in exports of rare earth magnets may be ending.' Trump told reporters that the 'very good' call 'straightened out any complexity, it's very complex stuff. I think we're in very good shape with China and the trade deal.' Yet the 'grand bargain' global markets hoped Trump would strike with China still risks becoming more like a grand flop. The Chinese side, for example, seems far less impressed by the Thursday call, which officials suggested was perfunctory and vague. As Cornell University economist Eswar Prasad puts it, the 'asymmetry' in Beijing's and Washington's reporting of the call suggests that Xi held to a tough line and Trump 'didn't get much acquiescence' to his demands. Odds are good that Xi will continue to drag things out, believing time is on China's side. By appearing above the fray, Xi continues to outmaneuver Trump, who often seems to be negotiating with himself. China is also having some success positioning itself as the adult in the room as Trump lurches from one trade stance to another, hour by hour. 'The overall objectives of the trade aggression, other than the display of raw power, are as muddled as ever,' says Arthur Kroeber, an analyst at Gavekal Research. Kroeber adds that 'fresh hostilities between the US and China show that the many questions left hanging after the Geneva ceasefire in mid-May still have no satisfactory answers. It's not clear whether US trade policy is being run by Trump, his trade negotiators or his national security team.' So far, Xi has taken a go-slow approach to trade deal negotiations. Efforts by US Treasury Scott Bessent and Trade Representative Jamieson Greer to convince markets that a pact was in the works, imminent even, haven't been reciprocated from the Chinese side. China has reason to tread carefully. On April 10, Trump hiked China tariffs to a cartoonishly high 145%. Such a levy is 'effectively an embargo,' notes University of Michigan economist Justin Wolfers. It's also an action likely to turn off the other side, squandering any remaining goodwill between governments. By the time Trump backed down, cutting the tax to 30% on May 12, it was too late. This likely explains why Team Xi came forward with zero concessions in the days that followed what Trump World called a 'truce' between the two biggest economies. On May 30, Trump declared that Beijing had 'totally violated its agreement with us.' But then on June 4, Trump made it clear Xi's inscrutability is keeping him up at night. In a thirsty 2:17 a.m. social media rant, Trump declared: 'I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!.' Gita Gopinath, the International Monetary Fund's (IMF) first deputy managing director, warns that the shock from Trump's trade war is worse than Covid-19. 'This time the challenge is going to be greater for them compared to the pandemic,' Gopinath tells the Financial Times. 'During Covid, central banks were moving in the same direction… easing monetary policy very quickly.' At this point, she adds, monetary authorities are 'steering through the fog' without coordination or a shared crisis playbook. The Organization for Economic Cooperation and Development (OECD) thinks global growth will now slow to 2.9% in 2025 from 3.3% in 2024, the weakest pace of expansion since the pandemic. It sees US growth slowing to 1.6% from an earlier forecast of 2.8%. 'Weakened economic prospects will be felt around the world, with almost no exception,' says OECD chief economist Alvaro Pereira. 'Lower growth and less trade will hit incomes and slow job growth.' In a report on Tuesday, OECD said that 'agreements to ease trade tensions and lower tariffs and other trade barriers will be instrumental to revive growth and investment and avoid rising prices. This is by far the most important policy priority.' On the US economy, OECD Secretary General Mathias Cormann told reporters that 'the main headwinds are lower export growth as a result of retaliatory measures from trading partners, the impact of high policy uncertainty, and a marked slowdown in net immigration.' Yet the uncertainty factor is just as bad as Trump's tariffs themselves. Particularly as one US court reverses Trump's taxes on the grounds that he lacks the authority to impose them and another keeps them in place. 'I'm operating under the assumption that some major elements of Trump's tariff policies will remain intact in one form or another,' says Stephen Roach, economist at Yale University. 'Hopefully, they won't be as severe as threatened earlier, but they will nonetheless impose meaningful taxes on most US imports, with an especially steep penalty on those coming from China.' Roach adds that 'I still suspect that tariffs surviving the current legal skirmishes are likely to be onerous enough to have negative impacts on global trade, with especially adverse implications for the US and China.' Trouble is, Roach says, 'in this climate, companies have no idea how to scale and source inputs for their multinational production platforms. The planning exercise has become an oxymoron, with serious consequences for the real economy.' The bottom line, Roach notes, is that a 'protracted period of policy uncertainty essentially freezes business decision-making on capital spending and hiring, with negative repercussions for income generation and consumer demand; consumer purchasing power should be further constrained by tariff-related price shocks. Uncertainty remains the enemy of decision making.' As Xi slow-walks Trump's desire for a big, splashy trade deal, the odds of this fragile truce holding are dwindling even after Thursday's call. For one thing, headlines about Trump's having caved on tariffs as Wall Street stocks plunged are grating on the president and his inner circle. So is the #TACO narrative — the idea that Trump Always Chickens Out on import taxes. Beijing 'successfully called Trump's bluff,' notes Mark Williams, economist at Capital Economics. Eurasia Group founder Ian Bremmer notes that Trump's talk of a 'total reset' with China is really his 'biggest climbdown to date.' Since the 1980s, Trump observers have known that nothing angers him more than being perceived as the 'loser' in any negotiation. This partly explains why he signed — and loudly touted — a trade agreement with the UK, an economy with which Washington has a trade surplus. It betrayed a desperation to highlight a trade deal of any kind, no matter how minor. Japan is proving to be in no hurry to negotiate a bilateral pact, just six years after the last one with Trump 1.0. Prime Minister Shigeru Ishiba has made it clear Tokyo will negotiate at its own pace — not in haste. Over in Seoul, South Korea's new president, Lee Jae-myung, says he has no intention of rushing to the negotiating table. He's far more liberal than his predecessor Yoon Suk Yeol. Pundits call him Korea's answer to US Senator Bernie Sanders. As such, Lee is unlikely to make quick concessions at the expense of workers' rights in a nation where labor unions wield real power. At the same time, Xi's strategy of playing the long game and not flinching is offering the rest of Asia a playbook for fending off Trump's negotiating team. His tactical retreat sends a message that plunging markets will change Trump's mind in an instant. First, it was swooning stocks that had Trump delaying his 'reciprocal' tariffs. Then, the chaotic surge in US Treasury yields forced Trump to step back from the brink once again. Yet tensions are almost certain to flare up anew once Trump realizes that Beijing isn't coming forward with the concessions Trump thinks he deserves for cutting his China tariff by 79%. From Beijing's perspective, Trump backed off because he'd overreacted in the first place. As JPMorgan Chase CEO Jamie Dimon puts it, the tariffs were 'too large, too big and too aggressive' for the US economy's own good. Trouble is, Trump has a 40-plus-year track record of arguing that tariffs are the answer to virtually every economic problem imaginable. Trump's most consistent economic view through the decades is that Asia is exploiting the US and only import taxes can save the day. He's called tariffs 'beautiful' and claimed they will 'supercharge' the US economy. Yet as economists know, sizable tariffs can also be stagflationary. Team Xi appears to be following a blueprint provided by former Japanese Prime Minister Shinzo Abe. In 2018 and 2019, Abe slow-walked negotiations with Trump 1.0. No doubt, Team Xi is busily strategizing on their own Abe-like dodge, minus the aggressive flattery. Xi's Communist Party, of course, does not have to contest mid-term elections 18 months from now. And Xi knows it. As such, Beijing is in no hurry to sign a 'Phase Two' trade agreement with a US leader sure to demand a 'Phase Three' round of talks a year from now. At the same time, US officials are learning that Trump's chaotic Phase One process prompted China to pivot to other markets. Today, China's top trading partner is the 10 Association of Southeast Asian Nations, followed by the European Union. Also, China is actively growing its market share among the BRICS – Brazil, Russia, India, China, South Africa – and the Global South. Xi's 'Made in China 2025' strategy has been quietly making the nation more self-sufficient. All of which means Trump's hopes of pulling off a massive, world-changing trade deal are slipping away, even after his declaration after Thursday's call that such a deal is on the horizon. And if he's wondering who's to blame, all Trump needs to do is look in the mirror. Follow William Pesek on X at @WilliamPesek
HKFP
an hour ago
- HKFP
Safeguarding national security should become Hong Kong's ‘culture,' leader John Lee says
Safeguarding national security should become a 'culture' in Hong Kong, Chief Executive John Lee has said, vowing to strengthen public education and train officers to counter 'state-level' threats. In an interview with the Beijing-backed newspaper Wen Wei Po, published on Friday, Lee said the government's effort to safeguard national security was still at its 'starting stage.' His remarks come almost five years after Beijing imposed a national security law in Hong Kong in the summer of 2020, following large-scale pro-democracy protests and unrest in 2019. The city enacted a homegrown security law, known locally as Article 23, in March 2024. Last month, subsidiary legislation for Article 23 was enacted. Six new offences were created to facilitate the work of China's Office for Safeguarding National Security (OSNS) in the city, and six sites occupied by the office were declared 'prohibited places,' with hefty penalties for intruders or spies. Lee said in his interview that Hong Kong was still 'setting up the institution' of safeguarding national security. 'We have to strengthen our information network to become more aware of the acts that endanger national security, as well as the opponents' financial capability, other resources, and manpower,' he said in Cantonese. He also said that authorities should step up the training of national security agents against state-level threats, such as spies. Spies 'could be highly discreet. Things that appear normal on the surface may involve a large conspiracy and a grand scheme behind,' he said. 'Ultimately, their motives and goals are to endanger our national security.' The city's government has been in 'good communication' with mainland Chinese authorities in training agents, he added. Meanwhile, Hong Kong will continue to promote national security education, Lee said, in a bid to make residents capable of recognising national security threats instantly. 'I hope they become more identified [with national security] and more proactive, so that safeguarding national security can become a culture,' he said. Over 300 people have been arrested for 'acts endangering national security' since Beijing's national security law came into effect. Beijing inserted national security legislation directly into Hong Kong's mini-constitution in June 2020 following a year of pro-democracy protests and unrest. It criminalised subversion, secession, collusion with foreign forces and terrorist acts – broadly defined to include disruption to transport and other infrastructure. The move gave police sweeping new powers and led to hundreds of arrests amid new legal precedents, while dozens of civil society groups disappeared. The authorities say it restored stability and peace to the city, rejecting criticism from trade partners, the UN and NGOs. Separate from the 2020 Beijing-enacted security law, the homegrown Safeguarding National Security Ordinance targets treason, insurrection, sabotage, external interference, sedition, theft of state secrets and espionage. It allows for pre-charge detention of up to 16 days, and suspects' access to lawyers may be restricted, with penalties involving up to life in prison. Article 23 was shelved in 2003 amid mass protests, remaining taboo for years. But, on March 23, 2024, it was enacted having been fast-tracked and unanimously approved at the city's opposition-free legislature. The law has been criticised by rights NGOs, Western states and the UN as vague, broad and 'regressive.' Authorities, however, cited perceived foreign interference and a constitutional duty to 'close loopholes' after the 2019 protests and unrest.
HKFP
an hour ago
- HKFP
Hong Kong artist remanded after being charged again over ‘Freedom' graffiti
A Hong Kong graffiti artist who was previously convicted for tagging the word 'Freedom' across the city has been remanded in custody after being charged with criminal damage for the third time. Appearing before Magistrate Gary Chu at the West Kowloon Law Courts on Thursday, 42-year-old Chan King-fai was taken into remand after he was again charged with three counts of criminal damage. He allegedly defaced shopfronts, traffic light control boxes, and traffic signs in Kwai Chung in 2023. Chan, who was not required to enter a plea on Thursday, is scheduled to appear in court again on July 3. The graffiti artist was taken into detention after his bail application was denied. Chan had been granted bail on two earlier occasions when he was charged with criminal damage. In March, the street artist was charged with 20 counts of criminal damage for tagging the Chinese characters for 'Freedom' combined with dollar signs in the vicinity of Central and Sheung Wan between January 5 and February 5 this year. He allegedly did so 'with the intention of damaging or being reckless as to whether or not the property would be damaged,' according to a court document. Chan is scheduled to appear in court on June 23 for the case. Chan was also previously arrested and charged with criminal damage in February 2023 after tagging objects – including buildings, shops, fuse boxes, bridges, and private vehicles – across the city between January and February that year. He was sentenced to a one-year probation order in December 2023 for tagging the word 'Freedom' across Hong Kong some 130 times, after admitting 20 counts of criminal damage and telling police that the graffiti was a response to financial pressure.
