South Korea’s newly enacted law supervising artificial intelligence use took effect Thursday, establishing the world’s first nationwide regulatory structure for the sector. The new framework introduces rules specifically designed to address misinformation and potential risks associated with AI, with implications for both domestic and international companies operating in the country.
The AI Basic Act, formally in force as of Thursday according to the Ministry of Science and ICT, places primary responsibility on companies and developers to manage concerns stemming from AI-generated content. This includes deepfakes and misinformation, with the government now authorized to levy fines or initiate investigations in response to breaches.
Key provisions require that any AI deployed in areas designated as “high-impact”—such as nuclear safety, water supply, transportation, healthcare, and financial services—must involve direct human oversight.
Additionally, multinational AI firms operating in South Korea are subject to local representation requirements if they meet certain thresholds: at least KRW 1 trillion in global annual revenue, over KRW 10 billion in South Korean sales, or more than 1 million daily domestic users.
By implementing these measures, the government aims to foster AI development in an environment prioritizing safety and public trust. Officials have described the legislative framework as supporting innovation while ensuring accountability in the rapidly evolving field.
While the law took effect ahead of similar initiatives elsewhere, such as the phased rollout of the EU’s AI Act, different approaches persist worldwide. The United States continues to favor lighter oversight to maintain flexibility for industry growth, while China has adopted some rules and suggested forming a global regulatory body.
Penalties for non-compliance with the law can reach up to KRW 30 million. However, regulators have announced a one-year grace period before fines are imposed, intended to help businesses adjust to the new requirements.
South Korea’s introduction of these rules seeks to solidify the nation’s status as a global AI leader, balancing industry advancement with new standards for safety and reliability.
