88% of Korean Companies Say Executive Positions Could Be at Risk if Data Sovereignty Fails; Only 30% Have a Strategy in Place
IT DAILY ·
✦ AI Summary
Everpure announced the 'Global Data Sovereignty Report 2026' on the 21st.
The survey included 2,100 business leaders from 8 countries and 200 business leaders in Korea.
The report said that while awareness of data sovereignty as a major business risk is high, actual strategy development remains insufficient.
Everpure, formerly Pure Storage, announced the 'Global Data Sovereignty Report 2026' on the 21st. The survey included 2,100 business leaders from 8 countries and 200 business leaders in Korea.
According to the report, many executives at global and domestic companies view data sovereignty as a major business risk that could determine executive tenure and even whether a company survives. Among C-level leaders at large global companies, 88% said they could lose their position as a senior decision-maker if a data sovereignty issue arises.
In addition, 91% of global companies cited massive financial losses and damage to external reputation as their main concerns regarding data sovereignty risk. In Korea, 89% also cited massive financial losses and damage to external reputation as their concerns about data sovereignty risk.
Despite this heightened vigilance, the level of preparedness in terms of response strategies was found to be insufficient. The report noted that while many companies see data sovereignty not merely as a technical issue but as a risk that could affect executive standing and corporate survival, actual strategy development remains inadequate.
Domestic companies showed a strong commitment to securing data sovereignty. Among Korean respondents, 91% said they would be willing to give up some advanced features and performance in order to use local or sovereign providers, compared with 85% globally. In addition, 41% of Korean companies were already restricting the use of SaaS providers that depend on infrastructure outside the country.
However, despite the strong sense of urgency, on-the-ground preparedness was found to be weak. Seventy percent of Korean companies were operating without an official data sovereignty strategy, compared with 64% globally.
Specific weaknesses in management capabilities also emerged. Sixty percent of Korean companies lacked visibility into who can access their data and who can control and manage it, compared with 62% globally. In addition, 53% of Korean companies had not established mitigation plans for forced data transfer or service interruptions due to geopolitical factors, compared with 56% globally.
The main obstacle in this situation was identified as a lack of execution capabilities and resources, at 56%. Difficulty securing executive support was also cited as a major obstacle, at 41% in Korea and 36% globally.
Jeon In-ho, country manager of Everpure Korea, said Korean companies have one of the highest priorities in the world when it comes to data sovereignty. However, he said 7 out of 10 Korean companies lack an implementation strategy for data sovereignty, pointing to a large gap between intent and execution. He explained that factors to consider in data sovereignty go beyond where data is stored and also include access rights, applicable laws, and the business impact if services are disrupted. He added that visibility and control need to be secured from the design stage, and that in doing so, data sovereignty can become a powerful competitive advantage rather than a constraint.
Rahiel Nasir, IDC Worldwide Digital Sovereignty Research Director, said digital sovereignty has emerged as a core board-level agenda item beyond simple regulatory compliance. He explained that verifying data storage location alone is not enough, and that control over the full data transfer process, including metadata, is needed. He also emphasized that a governance framework to protect assets from data requests under foreign jurisdictions and geopolitical risks is essential.
As a response to the issues raised earlier, Everpure proposed the 'Sovereignty by Design' framework and also presented its own solution, 'Everpure Data Intelligence,' which aims to ensure data visibility across hybrid environments, saying it will support companies in executing their strategies through this approach.
Source: IT DAILY · Kwon Young-seok
Original: https://www.itdaily.kr/news/articleView.html?idxno=242338
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Source: IT DAILY
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