South Korea’s AI Regulatory Bill Delayed Amid Political Turmoil | Be Korea-savvy

South Korea’s AI Regulatory Bill Delayed Amid Political Turmoil


(image: KobizMedia/ Korea Bizwire)

(image: KobizMedia/ Korea Bizwire)

SEOUL, Dec. 10 (Korea Bizwire) – South Korea’s Artificial Intelligence (AI) Framework Act, once slated for approval by the end of the year, has been derailed due to escalating political tensions following the botched martial law incident and the collapse of an impeachment motion against President Yoon Suk-yeol.

The delay has heightened uncertainty for the country’s AI sector, which is already grappling with regulatory ambiguities and infrastructure challenges.

The bill, designed to foster AI development and establish trust-based governance, was set for review by the National Assembly’s Legislation and Judiciary Committee but was sidelined as lawmakers prioritized a motion for a special investigation into allegations against President Yoon.

The AI Framework Act had cleared a key parliamentary committee last month, sparking optimism within the tech industry. Its anticipated passage had buoyed shares of AI-related companies, reflecting hopes that regulatory clarity could unlock further growth. Now, with partisan divisions dominating the legislative agenda, the timeline for revisiting the bill remains uncertain.

Industry leaders and experts have voiced frustration over the delay. “The rapid growth in AI demand requires a comprehensive national strategy for infrastructure and legal frameworks,” said a platform industry representative. “The current lack of direction leaves companies navigating critical decisions on their own.”

The delay comes as South Korea seeks to address significant gaps in its AI infrastructure. The Ministry of Science and ICT has been pushing for increased funding to establish a national AI computing center, aimed at alleviating shortages of GPUs and other key resources. However, budget negotiations have stalled amid the political crisis, exacerbating concerns about the country’s ability to compete globally.

Experts warn that delays in government support could have long-term consequences. “AI requires robust infrastructure and dedicated testing facilities to remain competitive,” said Choi Kyung-jin, a law professor at Gachon University. “Lack of investment or a coherent legal framework risks undermining South Korea’s AI ambitions.”

Startups, particularly vulnerable to funding disruptions, are feeling the strain. Some government-supported ventures report delays in receiving promised research and development funds, raising fears of an industry slowdown and talent drain. “Missed funding opportunities could push AI developers to seek opportunities overseas,” said Gi-dae Lee, head of the Startup Alliance.

Meanwhile, global competitors are advancing rapidly. OpenAI recently unveiled “Sora,” an AI capable of generating realistic one-minute videos from text prompts, signaling new breakthroughs in generative AI. South Korea’s delayed progress, industry leaders warn, risks leaving the nation behind in the race to shape the future of AI.

M. H. Lee (mhlee@koreabizwire.com)

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