South Korea’s AI Basic Act: A New Frontier in AI Governance
South Korea has joined the ranks of jurisdictions establishing formal rules around the development and use of artificial intelligence (AI) with the introduction of the AI Basic Act. This legislation requires AI providers to appoint an in-country representative to ensure compliance with safety and governance mandates.
Influences and Expectations
The AI Basic Act demonstrates influences from the EU AI Act in its classification of AI based on risk and its emphasis on human oversight, record-keeping, and transparency. However, stakeholders believe that the South Korean legislation is less prescriptive, allowing for flexibility in future enforcement and decrees. This approach aims to alleviate corporate uncertainty and encourages public-private investment.
Minister of Science and ICT, Yoo Sang-Im, emphasized that the enactment of the law represents a crucial milestone for Korea, aimed at stimulating large-scale investments in the AI sector.
Key Elements of the Bill
According to industry experts, the bill reflects South Korea’s ongoing focus on AI and mandates the labeling of generative AI content. This requirement comes amid a seven-month crackdown on explicit deepfake content, highlighting the need for stringent regulations in this area. The enforcement mechanisms for the labeling requirement are expected to be detailed in future regulations.
The legislation also aims to promote the AI industry by calling for investments in data centers, attracting AI talent, and making data more accessible. South Korea has pledged a multi-trillion won investment in general-purpose AI and a substantial budget for establishing a national AI computing center.
New Requirements for AI Systems
The AI Basic Act introduces additional obligations for specific categories of AI systems. For instance, high-impact AI—those utilized in essential services such as healthcare and employment—must notify users in advance, and deployers are required to implement risk management plans with human oversight.
While the AI Basic Act shares similarities with the EU AI Act, many of its requirements will not be immediately enforced, making it less stringent at present. The Act encourages rather than mandates AI risk assessments, allowing for a more gradual approach to compliance.
International Considerations
A notable aspect of the bill is its stipulation that overseas AI providers meeting certain thresholds must designate a domestic representative responsible for safety assurance and compliance with South Korean regulations. This requirement highlights the Act’s emphasis on ensuring that foreign entities adhere to local laws.
The legislation also mandates that AI developers comply with existing laws, such as the Personal Information Protection Act, ensuring that all relevant legal requirements are met.
Looking Ahead: Implementation and Enforcement
Despite a lengthy legislative process, the bill passed with overwhelming support in the National Assembly, receiving approval from 260 out of 264 lawmakers. This strong backing suggests a high likelihood of successful implementation, with enforcement not set to begin until January 2026.
As South Korea embarks on this new regulatory journey, the AI Basic Act signals a commitment to fostering both innovation and responsible oversight in the rapidly evolving field of artificial intelligence.
