South Korea’s AI Act Comes Into Force with Safety Measures
South Korea’s Artificial Intelligence Act came into force last week, making it the second jurisdiction after the European Union to adopt an AI regulatory framework. It is noteworthy for establishing safety requirements for high-performance frontier AI systems.
Overview of the AI Basic Act
Passed in December 2024 and enacted on January 21, 2025, the AI Basic Act is intended to provide a legal framework to enhance South Korea’s national competitiveness in AI while ensuring ethical standards and public trust in the technology. The Act aims to protect human rights and dignity while improving the quality of life through well-regulated AI development.
According to the Act, “AI technology and the AI industry shall be developed in a direction that promotes safety and reliability to improve people’s quality of life.” To achieve this, it establishes legal grounds for the creation of a national AI control tower, an AI safety institute, and various governmental initiatives in R&D, standardization, and policies.
Safety Obligations Under the AI Basic Act
A significant feature of the AI Basic Act is its safety obligations. The Act mandates the establishment of an AI safety institute to secure AI safety by protecting people’s lives and maintaining a trust foundation in an AI society. It assigns transparency and safety responsibilities to businesses developing and deploying high-impact AI and generative AI.
These AI systems are defined as those with the potential to significantly impact human life, safety, or fundamental rights. Specific safety measures include:
- Conducting AI risk assessments
- Designating a local representative
- Obtaining verification and certification before providing high-impact AI
Government Perspectives
Kim Kyeong-man, deputy minister of the Office of AI Policy at the Ministry of Science and ICT, emphasized that the intention behind these measures is to ensure public trust rather than to impose excessive regulations that hinder AI development. Kim stated, “The legislation didn’t pass because it’s perfect; it passed because we needed a foundation to keep the discussion going.”
To ease the initial burden on businesses, the government plans to implement a grace period of at least one year during which it will prioritize consultations and education over fact-finding investigations or administrative sanctions.
South Korea’s Commitment to AI
The enforcement of the AI Act marks a significant milestone in South Korea’s commitment to AI. The country has prioritized investment in innovative technologies in recent years, evidenced by an 8% increase in its 2026 budget aimed at expanding AI investment, the highest rise in government expenditure in four years.
Finance Minister Koo Yun-cheol noted, “We are now in the era of an AI transformation, and if we fall behind in so-called ‘physical AI,’ we will have no future.”
Additionally, South Korean President Lee Jae Myung has sought to expand cooperation in AI with other nations, including signing a memorandum of understanding (MoU) with Italy for collaboration in the AI chip industry and joint research projects.
Supporting Measures for AI Sector Growth
While the AI Basic Act imposes new obligations, it also includes measures to bolster the AI sector, such as establishing the Korea AI Promotion Association and promoting AI demonstration testing. This comprehensive approach positions South Korea to remain relevant in the global AI race and solidifies its status as a regional and global tech powerhouse.
In conclusion, for AI to thrive under the law and address emerging challenges, integrating an enterprise blockchain system is crucial. This would ensure data quality and ownership, keeping data secure while maintaining its immutability.
