In December 2024, South Korea’s National Assembly passed the AI Basic Act, introducing a comprehensive regulatory framework for artificial intelligence. South Korea now becomes the second jurisdiction after the EU to enact such legislation.
Key Provisions of the AI Basic Act
- AI Industry Development: The Minister of Science and ICT must create a national AI master plan every three years to promote AI innovation, support startups and SMEs, and strengthen AI infrastructure.
- AI Ethics & Safety: The Act mandates transparency, risk assessment, and safety measures for AI, particularly high-impact AI (affecting human life and rights) and generative AI (producing text, images, and videos).
- AI Governance: The National AI Committee, chaired by the President, along with institutions like the AI Policy Center and AI Safety Research Institute, will oversee AI development and regulation.
- Obligations for AI Companies: Businesses must disclose AI-generated content, conduct risk assessments, implement safety protocols, and designate local representatives for compliance.
- Enforcement & Sanctions: The government can investigate non-compliance and impose fines up to KRW 30 million for violations such as failure to disclose AI usage or designate a representative.
Implications & Next Steps
Korean law firm, Shin & Kim, commenting on the new Act suggested that it would help to reduce regulatory uncertainty, drive AI innovation, and solidify South Korea’s global AI leadership. However, detailed compliance rules will only be clarified in subordinate legislation.
Although there are important differences between the two Acts it is clear that the EU AI Act has inspired the Korean version and this perhaps offers some indication of the future direction of travel for AI regulation globally.