By Haifa Chairunisa
South Korea has marked a major milestone in global technology governance, becoming the first country to enact comprehensive legislation regulating artificial intelligence. On Thursday (January 22), the government officially passed the AI Basic Act, introducing strict rules on transparency and accountability in AI use.
The law requires companies to inform users when their products or services rely on generative AI and to clearly label AI-generated content, including deepfakes that closely resemble real material. Authorities have emphasized that digital watermarks or similar identifiers are considered the minimum safeguard to prevent misuse of AI technology.
South Korea’s Ministry of Science and ICT said such measures reflect a growing global trend among major international companies, according to AFP. Companies that fail to comply with labeling requirements may face fines of up to 30 million won (around USD 20.6 Million).
The legislation also classifies 10 sectors as “high-impact AI” areas, including nuclear power, drinking water systems, criminal investigations, loan assessments, education, transportation, and healthcare. In these fields, human oversight is mandatory to ensure safety and maintain public trust.
President Lee Jae Myung said the AI Basic Act takes full effect immediately, stressing the need to balance institutional support for innovation with safeguards against potential risks. The government sees the law as part of South Korea’s broader ambition to become one of the world’s top three AI powers, alongside the United States and China.
To support this goal, authorities have announced plans to double AI development spending this year. The Ministry of Science and ICT said the law is intended to lay a foundation for AI innovation rooted in security and trust.
Local media have described the AI Basic Act as the world’s first comprehensive AI regulatory framework to be enforced. While the European Union adopted the EU AI Act in June 2024, its provisions will be implemented gradually through 2027.
Despite its ambitions, the law has drawn concern from industry players, particularly startups, who warn that early regulation could hinder innovation. Startup Alliance South Korea co-head Lim Jung-wook told Reuters that some founders question why South Korea must lead in adopting such strict rules.
To address these concerns, the government has introduced a grace period of at least one year before administrative fines are enforced. Authorities have also pledged to establish guidance platforms and support centers to help companies adapt.
Lim Mun-yeong, vice chairman of the presidential council for national AI strategy, said accelerating AI innovation remains essential, adding that the government will closely monitor the law’s impact and may suspend regulations if necessary.
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