South Korea enacts world's first comprehensive AI regulation law, beating EU by years

South Korea launches landmark laws to regulate AI, startups warn of compliance burdens

Seoul is hoping that the new AI Basic Act will position the country as a leader in the field. It has taken effect in South Korea sooner than a comparable effort in Europe, where the EU AI Act is being applied in phases through 2027. South Korea introduced on Thursday what it says is the world's first comprehensive set of laws regulating artificial intelligence, aiming to strengthen trust and safety in the sector, but startups fretted ⁠that compliance could hold them back. Seoul is hoping that the new AI Basic Act will position the country as a leader in the field. It has taken effect in South Korea sooner than a comparable effort in Europe, where the EU AI Act is being applied in phases through 2027. Global divisions remain over how to regulate AI, with the U.S. favouring a more light-touch approach to avoid stifling innovation. China has introduced some rules and proposed creating a body to coordinate global regulation. One key feature of the laws is the requirement that companies must ensure there is human oversight in so-called "high-impact" AI which includes fields like nuclear safety, the production of drinking water, transport, healthcare and financial uses such as credit evaluation and loan screening. Other rules stipulate that companies must give users advance notice about products or services using high-impact or generative AI, and provide clear labelling when AI-generated output is difficult to distinguish from reality. The Ministry of Science and ICT has said the legal framework was designed to promote AI adoption while building a foundation of safety and trust. The bill was prepared after extensive consultation and companies will be given a grace period of at least a year before authorities begin imposing administrative fines for infractions. The penalties can be hefty. A failure to label generative AI, for example, could leave a company facing a fine of up to 30 million won ($20,400). The law will provide a "critical institutional foundation" for South Korea's ambition to become a top-three global AI powerhouse, Science minister Bae Kyung-hoon, a former head of AI research at electronics giant LG, told a press conference. But Lim Jung-wook, co-head of South Korea's Startup Alliance, said many ⁠founders were frustrated that key ⁠details remain unsettled. "There's a bit of resentment - why do we have to be the first to do this?" he said. Jeong Joo-yeon, a senior researcher at the group, said the law's language was so vague that companies may default to the safest approach to avoid regulatory risk. The ministry has said it plans a guidance platform and dedicated support centre for companies during the grace period. "Additionally, we will continue to review measures to minimise the burden on industry," a spokesperson said, adding that authorities were looking at extending the grace period if domestic and overseas industry conditions warranted such a measure.

South Korea launches landmark laws to regulate artificial intelligence

South Korea introduced on Thursday what it says is the world's first comprehensive set of laws regulating artificial intelligence, aiming to strengthen trust and safety in the sector, but startups fretted that compliance could hold them back. Seoul is hoping that the new AI Basic Act will position the country as a leader in the field. It has taken effect in South Korea sooner than a comparable effort in Europe, where the EU AI Act is being applied in phases through 2027. Global divisions remain over how to regulate AI, with the U.S. favoring a more light-touch approach to avoid stifling innovation. China has introduced some rules and proposed creating a body to coordinate global regulation.

Korea becomes 1st nation to enact comprehensive law on safe AI usage - The Korea Times

Korea on Thursday formally enacted a comprehensive law governing the safe use of artificial intelligence (AI) models, becoming the first country globally in doing so, establishing a regulatory framework against misinformation and other hazardous effects involving the emerging field. The Basic Act on the Development of Artificial Intelligence and the Establishment of a Foundation for Trustworthiness, or the AI Basic Act, officially took effect Thursday, according to the science ministry. It marked the first governmental adoption of comprehensive guidelines on the use of AI globally. The act centers on requiring companies and AI developers to take greater responsibility for addressing deepfake content and misinformation that can be generated by AI models, granting the government the authority to impose fines or launch probes into violations. In detail, the act introduces the concept of "high-risk AI," referring to AI models used to generate content that can significantly affect users' daily lives or their safety, including applications in the employment process, loan reviews and medical advice. Entities harnessing such high-risk AI models are required to inform users that their services are based on AI and are responsible for ensuring safety. Content generated by AI models is required to carry watermarks indicating its AI-generated nature. "Applying watermarks to AI-generated content is the minimum safeguard to prevent side effects from the abuse of AI technology, such as deepfake content," a ministry official said. Global companies offering AI services in Korea meeting any of the following criteria -- global annual revenue of 1 trillion won ($681 million) or more, domestic sales of 10 billion won or higher, or at least 1 million daily users in the country -- are required to designate a local representative. Currently, OpenAI and Google fall under the criteria. Violations of the act may be subject to fines of up to 30 million won, and the government plans to enforce a one-year grace period in imposing penalties to help the private sector adjust to the new rules. The act also includes measures for the government to promote the AI industry, with the science minister required to present a policy blueprint every three years.