Deputy Prime Minister Bae Kyung-hoon visits the Artificial Intelligence Safety Institute. (Photo courtesy of the Ministry of Science and ICT)
SEOUL, Jan. 22 (Korea Bizwire) – South Korea on Thursday formally enacted a far-reaching law governing the use of artificial intelligence, positioning itself as the first country to introduce a comprehensive legal framework aimed at curbing misinformation, deepfakes and other emerging risks tied to the technology.
The legislation, known as the AI Basic Act, establishes national standards for the development and deployment of artificial intelligence systems while granting the government new authority to investigate abuses and impose penalties for violations.
Officials at the Ministry of Science and ICT said the law is intended to strike a balance between fostering innovation and safeguarding public trust, as generative AI systems become more deeply embedded in everyday life.
At the core of the legislation is a new classification of “high-risk AI” — systems whose outputs could significantly affect people’s rights, safety or economic well-being. The category includes applications used in hiring decisions, credit assessments and medical guidance.
Developers and service providers operating such systems will be required to clearly disclose that users are interacting with artificial intelligence and to take responsibility for managing potential harms. Content generated by AI must also carry digital watermarks indicating that it was created by an algorithm rather than a human.
“Watermarking is the minimum safeguard needed to prevent the misuse of AI technologies, including deepfake content,” a ministry official said.
The law also extends South Korea’s regulatory reach to major global technology companies. AI service providers with annual global revenue exceeding 1 trillion won, domestic sales of at least 10 billion won, or more than one million daily users in South Korea must appoint a local legal representative. Companies expected to fall under the requirement include OpenAI and Google.
Violations may result in fines of up to 30 million won, though authorities said a one-year grace period will be applied before full enforcement begins, allowing companies time to adapt to the new standards.
Beyond regulation, the act includes provisions aimed at promoting the domestic AI industry. The science minister is required to present a national AI policy roadmap every three years, outlining investment priorities and long-term development goals.
As governments worldwide grapple with how to regulate artificial intelligence without stifling innovation, South Korea’s approach is likely to be closely watched — both as a test case for enforceable AI governance and as a signal of how rapidly regulation is catching up with the technology itself.
Kevin Lee (kevinlee@koreabizwire.com)
