DeepSeek AI Under Scrutiny: South Korea Investigates Data Sharing with ByteDance

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On Mon, 17 Feb, 8:00 AM UTC

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South Korea's data protection authority accuses Chinese AI firm DeepSeek of sharing user data with ByteDance, TikTok's parent company, raising global privacy concerns and prompting investigations.

DeepSeek AI Faces Data Privacy Allegations in South Korea

South Korea's Personal Information Protection Commission (PIPC) has launched an investigation into Chinese AI firm DeepSeek, accusing the company of sharing user data with ByteDance, the parent company of TikTok. This development has sparked global concerns about data privacy and security in the rapidly evolving AI sector 12.

Investigation and App Store Removal

The PIPC announced that it had found evidence of DeepSeek "communicating with ByteDance," although the extent and nature of the data transfer remain unclear 1. In response to the investigation, DeepSeek has removed its app from both Google Play and Apple's App Store in South Korea, agreeing to cooperate with the authorities 5.

Data Protection Laws and Compliance

South Korean data protection laws require explicit user consent for sharing personal information with third parties 1. Similarly, India's data protection framework mandates clear consent notices and specific requirements for data transfers, especially to foreign entities 1. These regulations highlight the growing global emphasis on data privacy and security.

ByteDance's Response and Cloud Services Connection

ByteDance has dismissed the accusations, stating that the connection between the two companies is due to DeepSeek's use of cloud services provided by Volcano Engine, a ByteDance-owned company. However, ByteDance maintains that this does not grant them access to DeepSeek's data 23.

Global Reactions and Concerns

The allegations against DeepSeek have reinforced existing concerns about Chinese tech companies and data security. Several countries, including the United States, Italy, France, Germany, Taiwan, and Australia, have already targeted DeepSeek AI over privacy issues 2. The controversy surrounding DeepSeek echoes similar concerns raised about TikTok, which has faced bans and restrictions in various countries 34.

DeepSeek's Rapid Rise and Scrutiny

DeepSeek gained significant attention when it launched in January 2025, attracting 12 million downloads within 48 hours 2. However, this rapid success has been accompanied by intense scrutiny. Critics have raised concerns about the AI model's censorship tendencies, its data storage practices on Chinese servers, and potential access by the Chinese government 15.

Broader Implications for AI Regulation

The PIPC's investigation into DeepSeek is expected to result in a broader compliance framework for foreign AI companies operating in South Korea 5. This case highlights the growing need for international standards and regulations in the AI industry, particularly concerning data privacy and cross-border data transfers.

Economic and Geopolitical Context

The scrutiny of DeepSeek comes amid ongoing trade tensions between China and the United States, adding another layer of complexity to the situation 1. The incident also raises questions about the balance between technological innovation and data protection in the global AI race.

As the investigation unfolds, the tech industry and regulators worldwide will be closely watching the outcomes, which could have far-reaching implications for the future of AI development and international data governance.

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