South Korean law to regulate AI takes effect

Reporting from Seoul, the South African outlet EWN, carrying a wire dispatch, says South Korea has become the first country in which a broad artificial intelligence statute is fully in force. President Lee Jae Myung announced that the AI Basic Act was operating in full on the day of the report, a Thursday. Korean media described it as the first comprehensive AI regulation anywhere to take effect, while the Ministry of Science and ICT characterised it as the second of its kind to be enacted worldwide.

The act was passed in December 2024. According to the ministry, its purpose is to build a foundation grounded in safety and trust that supports AI innovation. The country has stated an ambition to rank alongside the United States and China among the three leading AI powers, and it plans to triple its AI spending this year. The text compares the law with the European Union's AI Act, which the European Parliament adopted in June 2024 but which will only become fully applicable in 2027, although EU regulators have been able to ban systems posing unacceptable risks for the past year.

On substance, companies must tell users in advance when a product or service relies on generative AI, and must clearly label content, deepfakes included, that is hard to tell apart from reality. Ten sensitive fields, including nuclear power, medical care, education, loan screening and criminal investigations, face tougher transparency and safety expectations. Violations can draw fines of up to 30 million won, about 20,400 dollars.

Lim Mun-yeong, vice chairman of the national AI strategy council under the president, acknowledged that sceptics worry about the consequences of regulation. He said the government would suspend regulation if needed, monitor developments and respond accordingly.