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South Korea Puts First Comprehensive AI Law Into Effect

The rollout prioritizes guidance over penalties through a one-year grace period with a dedicated support desk.

Overview

  • The AI Basic Act took effect on Jan. 22, requiring human oversight for high-impact uses and clear disclosure or watermarking when AI output could be mistaken for reality.
  • Enforcement centers on compliance with corrective orders, a minimum one-year grace period, no criminal penalties, and fines capped at 30 million won for ignored orders.
  • Korea defines duties for high-performance systems using technical thresholds such as cumulative training compute, which officials say no current models meet.
  • The law establishes national governance through the Presidential Council on National Artificial Intelligence Strategy and a legal basis for an AI Safety Institute.
  • Startups warn of vague requirements and potential burdens, as the government signals possible grace-period extensions and requires large foreign providers to appoint local representatives, a bar currently met by OpenAI and Google.