Korea’s AI Basic Act: A New Era for National Competitiveness

Korea Passes AI Basic Act: A Step Towards Enhancing National AI Competitiveness

The Basic Act on the Development of Artificial Intelligence and the Establishment of Trust has been officially passed by the National Assembly of Korea, marking a significant milestone as the second such legislation in the world, following the European Union’s initiative. This act aims to lay a solid foundation for advancing artificial intelligence (AI) in the country.

Legislative Journey

The AI Basic Act has undergone extensive discussion over the past four years, having been proposed in July 2020. The 22nd National Assembly merged 19 different bills after reaching a consensus between the ruling and opposition parties. The act was passed in a plenary session on December 26, 2024, and is set to take effect in January 2026.

Key Provisions of the AI Basic Act

According to the provisions outlined in the act:

  • The Minister of Science and ICT is empowered to establish a national AI basic plan aimed at enhancing competitive capabilities every three years, ensuring collaboration with relevant ministries and local governments (Article 6).
  • The act provides a legal framework for the operation of the National AI Committee (Article 7) and establishes the AI Safety Research Institute to protect citizens from AI-related risks (Article 12).

Support for AI Industry Development

The act seeks to foster the AI industry through:

  • Government support for research and development (Article 13) and standardization (Article 14).
  • Creation of policies surrounding learning data (Article 15) and support for the introduction and utilization of AI technologies (Article 16).
  • Designation of AI clusters (Article 23) and promotion of AI data center policies (Article 25).
  • Facilitating AI convergence (Article 19) and ensuring the training of AI professionals (Article 21).
  • Special support for small and medium enterprises (Article 17) and the revitalization of startups (Article 18).

Regulatory Measures and Safety Protocols

The AI Basic Act also aims to preemptively address potential challenges associated with AI. It defines high-impact AI and generative AI as subjects of regulation, stipulating obligations for:

  • Ensuring transparency (Article 31) and safety (Article 32) in AI operations.
  • Defining responsibilities for operators (Article 34).
  • Providing government support for voluntary safety and reliability verification (Article 30) and conducting AI impact assessments (Article 35).

Future Implications

The enactment of the AI Basic Act represents a strategic move for Korea to strengthen its position in the global AI landscape. Minister Yoo Sang-im emphasized the significance of this legislation, noting its potential to mitigate uncertainties for corporations and promote substantial investments in the AI sector.

As the country prepares for the implementation of the AI Basic Act, follow-up measures such as the development of subordinate regulations and guidelines are expected to ensure that the law effectively integrates into the market.

In conjunction with the AI Basic Act, the National Assembly also passed the Digital Inclusion Act, aimed at enhancing accessibility to digital services, which is set to take effect from January 2026.

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