AI Watch: Global Regulatory Tracker – South Korea

Laws/Regulations Directly Regulating Artificial Intelligence (“AI Laws”)

Although there are no specific laws, regulations or regulations that directly regulate artificial intelligence (AI), the South Korean National Assembly has passed a bill introducing the Law on the Promotion of the Artificial Intelligence Industry and Principles for Establishing Trustworthy Artificial Intelligence (the “Artificial Intelligence Law”).¹ Once in force, the Artificial Intelligence Law is expected to constitute a consolidated set of laws covering seven AI-related laws introduced from 2022. The Artificial Intelligence Law aims not only to promote the Artificial Intelligence industry but also to protect its users by supporting a safer ecosystem by imposing stringent notification and certification requirements.²

Status of the AI Regulations

The 21st National Assembly of South Korea of the current South Korean administration adjourned on May 29, 2024, without making a decision on the adoption of the Artificial Intelligence Law. It is currently under consideration by the 22nd National Assembly of South Korea.³

Other regulations affecting artificial intelligence

There are draft laws and proposed amendments to existing laws that are not intended to directly regulate AI but may impact the use and/or development of AI in South Korea. A non-exhaustive list of examples includes:

Act on the promotion of the use of telecommunications networks and information protection: Amendments have been proposed to require notification to the Korea Communications Commission when providing AI-based recommendation services and to include “a person providing or intermediating the provision of information using artificial intelligence technology” in the definition of “information and communication service provider” so that such a person will be regulated on the basis of this Act
Personally Identifiable Information Protection Act: Amendments have been introduced to enable the Personal Data Protection Commission to request information in the event of a leak of personal data as a result of an artificial intelligence company’s algorithm
Fair Recruitment Procedures Act: Amendments have been proposed requiring companies to notify potential employees about the use of artificial intelligence when hiring
Act on the promotion of the content industry: Amendments have been proposed to require disclosure that content was generated using artificial intelligence technology
Copyright Act: Changes have been proposed to establish standards for the use of copyrighted works for automated information analysis using computers in order to clarify the limits of copyright infringement and the scope of permissible use of copyrighted works in the context of AI technologies
Act on official elections: Amendments were proposed to prohibit: (i) the use of artificial intelligence to manipulate polls by entering false information or commands, or transmitting election results for electioneering purposes; and (ii) the use of artificial intelligence to reduce commentary or reporting on election results

Definition of “AI”

As noted above, there are currently no specific laws or policies in South Korea that directly regulate AI. Therefore, artificial intelligence is not currently defined in South Korean legislation. Under the proposed Artificial Intelligence Act, “artificial intelligence” is defined as the electronic implementation of human intellectual capabilities such as learning, reasoning, perception, judgment and language understanding.

Territorial scope

As noted above, South Korea currently has no specific laws or regulations directly regulating AI. Therefore, at this stage there is no specific territorial scope.

Sector scope

As noted above, South Korea currently has no specific laws or regulations directly regulating AI. Therefore, at this stage there is no specific sectoral scope.

Compliance roles

As noted above, South Korea currently has no specific laws or regulations directly regulating AI. Therefore, there are no specific compliance obligations at this stage.

The fundamental issues that the AI regulations aim to address

As noted above, South Korea currently has no specific laws or regulations directly regulating AI. Nevertheless, the proposed Artificial Intelligence Act focuses on several key areas, including:⁴

Establishing the “allow first, regulate later” principle that will guide the development of artificial intelligence technologies
Classifying AI used in areas that directly impact human life and safety as “high-risk AI” and defining measures to ensure its reliability
Creating a legal basis for “AI Ethical Principles”
Providing support measures for innovative companies in the AI industry
Development of the AI Basic Plan and establishment of the AI Committee under the supervision of the Prime Minister

Risk categorization

As noted above, South Korea currently has no specific laws or regulations directly regulating AI. The draft Artificial Intelligence Act lists high-risk areas that may have a significant impact on the safety, health and protection of fundamental rights of society. These areas include energy, healthcare, medical devices, nuclear facilities, biometric information used in criminal investigations or arrests, artificial intelligence for judgments and assessments that have a significant impact on the rights and obligations of individuals (such as recruitment or credit screening), transport (including autonomous driving, means of transport and transport systems) and artificial intelligence used by the state, local governments and public institutions to make decisions affecting society.⁵

Key compliance requirements

As noted above, South Korea currently has no specific laws or regulations directly regulating AI. Therefore, there are no specific national compliance requirements related to AI at this stage.

regulators

In South Korea, there are several government bodies and ministries involved in regulating and supervising the use and development of artificial intelligence. Such regulators include below:

Ministry of Science and ICT (MSIT): MSIT is primarily responsible for setting the overall policy and strategic direction for the development and use of AI in South Korea – overseeing various initiatives to promote AI technology and integration across various sectors
Korean Communications Commission (KCC): The KCC regulates the use of artificial intelligence in communications and media – this includes ensuring that AI-based recommendation services and other communication services using artificial intelligence technology comply with relevant regulations
Personal Data Protection Commission (PIPC): PIPC oversees the protection of personal data in AI applications – this involves ensuring that AI systems comply with data protection laws and regulations, such as the Personal Data Protection Act
Korea Fair Trade Commission (KFTC): The KFTC monitors the fair use of artificial intelligence in business practices to prevent anti-competitive behavior and protect consumers – this includes overseeing artificial intelligence algorithms used in pricing, advertising and other business operations
Ministry of Health and Welfare (MOHW): MOHW regulates the use of artificial intelligence in the healthcare sector, including applications of artificial intelligence in medical devices, diagnostics and patient care

Enforcement powers and penalties

As noted above, South Korea currently has no specific laws or regulations directly regulating AI. Therefore, enforcement and penalties related to the creation, dissemination or use of AI are subject to related non-AI laws.

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_{White & Case means the international law practice of White & Case LLP, a New York limited liability partnership, White & Case LLP, a limited liability partnership incorporated under English law, and all other affiliates, partnerships and entities.}

_{This article is intended for general information of interested persons. It is not, and does not attempt to be, comprehensive. Due to the general nature of the content, it should not be construed as legal advice.}

Cameron Lee (trainee solicitor, White & Case, London) contributed to this publication.