Seoul, South Korea – The South Korean government has taken swift action to address growing concerns over data privacy violations involving the Chinese generative AI application, 'DeepSeek R1'. The app, developed by a Chinese startup, has been temporarily banned from new downloads in South Korea after it was discovered that user data was being transferred to ByteDance, the parent company of the popular social media platform TikTok.

The Personal Information Protection Commission (PIPC) of South Korea revealed on February 17th that it had confirmed the transfer of DeepSeek user information to ByteDance. The PIPC stated that DeepSeek acknowledged its shortcomings in complying with the Personal Information Protection Act. In response, the government recommended that DeepSeek take immediate action to halt new downloads and rectify the identified issues. DeepSeek subsequently complied with the directive.

The DeepSeek app had gained significant popularity in South Korea, with an estimated 1.21 million weekly active users as of late January. The revelation of user data transfer to a Chinese entity has fueled concerns about potential data breaches and the possibility of sensitive information being accessed by the Chinese government or large Chinese platforms.

This incident highlights the growing importance of AI technology as a core national capability in economic and security domains. The emergence of DeepSeek has been seen as a catalyst for the development of cost-effective and efficient AI technologies. However, the inherent risks associated with Chinese companies operating under strict government control cannot be ignored. The potential for user data and critical technology to be leaked to China raises serious concerns for South Korea.

While the PIPC has recommended corrective measures to DeepSeek, there are doubts about the effectiveness of such measures in preventing future incidents. Calls are growing for a thorough investigation into potential information leaks, and if any illegal activities are uncovered, it is imperative that strong measures are taken. These measures could include imposing fines and penalties, issuing corrective orders, and pursuing both civil and criminal liabilities.

The DeepSeek incident has also sparked calls for the overhaul of existing data protection regulations and related laws. There is a renewed push for the swift passage of the National Cybersecurity Framework Act, which has been stalled in the 21st National Assembly.

To fundamentally address the issue of information and technology leaks through AI, South Korea must prioritize the development of cutting-edge AI technologies that can rival those of the United States. It is also crucial to prepare for the 본격화 of the on-device AI market, leveraging South Korea's strengths in specific application areas such as mobility, healthcare, and education.

To succeed in the global AI race, the South Korean government and National Assembly must make every effort to support technology development and talent cultivation through comprehensive support measures, including tax incentives, budgetary allocations, and regulatory reforms. The recent series of AI policy consultations and meetings held by rival political parties should not be mere lip service; concrete legislative actions are needed to foster an AI innovation ecosystem.

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