South Korea rolls out landmark AI rules
What's the story
South Korea has enacted a landmark set of comprehensive laws to regulate artificial intelligence (AI), which it claims to be the first of its kind globally. The new regulations, part of the AI Basic Act, aim to enhance trust and safety in the sector. However, some start-ups have expressed concerns that these compliance requirements could hinder their growth. The AI Basic Act comes into effect in South Korea, ahead of a similar initiative in Europe that's rolling out in phases.
Regulatory requirements
Key provisions and compliance challenges
The AI Basic Act mandates companies to ensure human oversight in "high-impact" AI sectors such as nuclear safety, drinking water production, transport, healthcare, and financial services like credit evaluation, and loan screening. Other provisions require companies to notify users in advance about products or services using high-impact or generative AI. They also have to clearly label cases where AI-generated output is indistinguishable from reality.
Compliance timeline
Grace period and penalties
The Ministry of Science and ICT has said that a grace period of at least one year will be given to companies before administrative fines for violations are enforced. These penalties could be severe, with non-labeling of generative AI potentially resulting in a fine as high as 30 million won ($20,400).
Global ambition
A step toward global leadership
The AI Basic Act is seen as a "critical institutional foundation" for South Korea's ambition to become a top-three global AI powerhouse. Science Minister Bae Kyung-hoon, former head of LG Electronics' AI research division, said this at a press conference. However, some startup founders are frustrated by the lack of clarity on key details.
Regulatory ambiguity
Concerns over vagueness and regulatory risk
Jeong Joo-yeon, a senior researcher at South Korea's Startup Alliance, said the law's language was so vague that companies may default to the safest approach to avoid regulatory risk. In response to these concerns, the Ministry of Science and ICT plans to set up a guidance platform and dedicated support center for companies during the grace period.