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Smart Factory
2026-10-197 min read2

Before You Install AI Cameras on the Factory Floor — When Safety and Quality Vision Analytics and AMR Cameras Become Worker Personal Data: An SME Manufacturer's Checklist Under Korea's PIPA Mobile Video Device Rules and Labor-Management Council Consultation Duties (2026)

AI cameras and AMRs installed for safety or quality still collect personal data once workers appear on screen. This guide lays out what SME manufacturers should check before installation under Korea's PIPA mobile video device rules and labor-management council consultation duties, including a 10-point checklist.

KITIM Consulting Team

More Cameras on the Factory Floor Means More Privacy Risk

Cameras are multiplying inside factories. Smart safety equipment with AI human detection, vision AI quality inspection and AMRs (autonomous mobile robots) are all spreading. A camera may be installed for "safety" or "quality," but once it captures a worker's face or movements, that footage is personal data. Features that analyze behavior, such as fall detection or alerts when someone enters a danger zone, need extra care. Facial recognition that identifies a specific person goes further: it counts as sensitive data (biometric information) under Korean law and requires separate consent.

Some companies install equipment through a support program, then have to stop running it after a labor dispute or complaint. Checking in advance prevents that.

Fixed Cameras: Start With the Legal Basis

A factory interior with controlled access is usually not a "publicly accessible place." So collecting footage there falls under the general rules of Article 15 of the Personal Information Protection Act (PIPA), and you need a legal basis. One option is worker consent. The other is to show that the employer's legitimate interest is clear and outweighs workers' rights (Article 15(1)6). Facility safety, fire prevention and trade secret protection are typical examples. Even then, you must keep the camera's coverage to a minimum and never use the footage for other purposes.

The most common risk is purpose creep. Suppose footage collected for safety is later used to check attendance, rate work speed or support discipline. That use may go beyond the original purpose of collection. Publish the purpose, coverage area, operating hours and retention period on signage and in your privacy policy.

Moving Cameras: AMRs, Robots and Wearables

The amended PIPA, in force since September 15, 2023, added rules for mobile video devices (Article 25-2). To film people with a mobile device in a publicly accessible place for business purposes, one of these must apply:

  • There is a legal basis for the filming.
  • Filming was clearly indicated and the person did not object.
  • Filming can be indicated with lights, sounds, signs, written notices or announcements.

    AMRs that stay inside the plant are mainly governed by Article 15. Robots that work in yards or shipping areas where outsiders come and go, or that travel onto public roads, need a closer look under Article 25-2. Either way, write these items into the supplier's delivery specification up front:

  • Whether video is stored, and where (robot, on-premise server or cloud)
  • Face blurring or other anonymization turned on by default
  • Indicator lights or sounds that show recording is in progress
  • Don't Miss the Labor-Management Council Consultation

    Article 20 of the Act on the Promotion of Workers' Participation and Cooperation lists "installation of worker monitoring equipment in the workplace" as a matter the labor-management council must be consulted on. Workplaces with 30 or more regular employees are required to have a council. It is safest to consult before installation work begins, ideally while the business plan is still being finalized. The minutes should record:

  • Purpose, covered areas and analytics (human detection, falls, danger-zone entry, etc.)
  • Retention period and the procedure for viewing footage
  • A commitment not to use the footage for performance reviews or discipline
  • Reducing Risk Through Data Architecture

    With edge processing, video is analyzed on site and only events are saved, such as a clip of a few dozen seconds around an alarm. This keeps far less data than streaming raw video to the cloud all the time, so the risk is lower. Many companies set retention at around 30 days. Limit who can access footage and keep access logs.

    If a supplier or cloud provider handles the footage, sign a data processing outsourcing agreement (Article 26). If you employ foreign workers, provide notices in their main native languages as well.

    A 10-Point Checklist Before You Install

  • Define the purpose: safety, quality or security
  • Design the coverage: exclude changing and rest areas, minimize the field of view
  • Determine whether the device is mobile and where it will operate
  • Set up notices: signage, indicator lights
  • Update the privacy policy
  • Consult the labor-management council and keep minutes
  • Sign outsourcing agreements with suppliers and cloud providers
  • Set retention and deletion rules
  • Prepare a procedure for requests to view footage
  • Review at least twice a year
  • Build these items into the business plan or contract amendment for smart factory or smart safety equipment support programs, so you have less to change later. The consultation may change camera locations or analytics features, and that can mean changing the equipment specification. The sensible order is to finish the consultation first, then lock in the specs.

    How KITIM Can Help

    KITIM helps design video data processing structures at the application stage of smart factory and safety equipment support programs. We also advise on preparing labor-management consultation materials and internal rules for operating video systems. If you are planning to install cameras, contact the KITIM consulting team before you finalize the equipment specs.

    AI Video AnalyticsWorkplace CCTVWorker PrivacyMobile Video DevicesLabor-Management CouncilSmart Factory SafetyPIPA
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