By Kyu-seok Shim
SEOUL, Jan 22 (Reuters) – South Korea introduced on Thursday what it states is the world’s first comprehensive set of laws regulating artificial innotifyigence, 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 countest 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 utilizes such as credit evaluation and loan screening.
Other rules stipulate that companies must give utilizers advance notice about products or services utilizing high-impact or generative AI, and provide clear labelling when AI-generated output is difficult to distinguish from reality.
The Ministest of Science and ICT has declared 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 launch 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 powerhoutilize, Science minister Bae Kyung-hoon, a former head of AI research at electronics giant LG, informed a press conference.
But Lim Jung-wook, co-head of South Korea’s Startup Alliance, declared 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 declared.
Jeong Joo-yeon, a senior researcher at the group, declared the law’s language was so vague that companies may default to the safest approach to avoid regulatory risk.
The ministest has declared 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 industest,” a spokesperson declared, adding that authorities were viewing at extfinishing the grace period if domestic and overseas industest conditions warranted such a measure.
($1 = 1,468.7500 won)
(Reporting by Kyu-seok Shim; Editing by Ed Davies and Edwina Gibbs)
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