Overseas AI enterprise Deepseek case looking at Korea personal information protection law
Article posted in 2025-05-15 11:52:52 | VEAT
As the spread of AI-based global services increases, the number of cases where overseas companies directly process personal information of domestic users is rapidly increasing. The recent on-site inspection of the Chinese AI company 'DeepSeek' conducted by the Personal Information Protection Commission (hereinafter referred to as 'PIPC') is drawing attention as a clear example of how the Personal Information Protection Act can be practically applied to overseas operators.
The PIPC determined that DeepSeek violated various provisions while providing app services in Korea, including ▲failure to provide Korean processing policies ▲collection of personal information for purposes other than the service’s purpose ▲unauthorized overseas transmission of AI prompt content ▲lack of notification for AI learning purposes ▲failure to designate a domestic agent. Accordingly, it recommended corrective measures including suspending the overseas transfer of user prompt data, providing clear notifications about collection purposes and usage methods, and introducing an AI learning refusal function.
This case has served as an opportunity to re-establish the standard that all overseas companies collecting or transferring personal information of domestic users must comply with Korean laws. Accordingly, the PIPC has supplemented and distributed a guide in a checklist format that overseas operators can check themselves, and voluntary measures are recommended in cases where there is a risk of violating laws.
Law firm Veat provides comprehensive advice to ensure that foreign operators or global AI service companies meet the necessary legal requirements when handling personal information in Korea. It offers practical, situation-specific consulting, including AI data processing flow analysis, drafting overseas transfer consent forms, designing a domestic agent designation structure, and responding to on-site inspections.
If you are considering entering the domestic market as an overseas operator or are already providing services to Korean users, we recommend seeking expert advice to diagnose and prepare for potential violations of the Personal Information Protection Act.
If you require advice related to personal information, please feel free to contact Law firm Veat at any time.
For more specific details regarding this column, please refer to the official Law firm Veat blog.
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