South Korea has enacted comprehensive AI regulatory laws, raising concerns among startups that they may hinder development.
PANews reported on January 22 that South Korea unveiled a comprehensive set of artificial intelligence (AI) regulations on Thursday, calling it "the world's first of its kind," aimed at strengthening trust and safety in the industry. However, startups worry that compliance could hinder their growth. South Korea hopes the new Basic Law on Artificial Intelligence will make it a leader in the field, while the EU's AI Act will be implemented in phases until 2027. Global disagreements persist on AI regulation, with the US favoring a more lenient approach to avoid stifling innovation. The bill, drafted after extensive consultation, will give companies at least a one-year grace period before authorities impose administrative fines for violations. Penalties can be severe. For example, companies failing to label generative AI could face fines of up to 30 million won (approximately $20,400). Jeong Joo-yeon, a senior researcher at the Startup Alliance, a South Korean startup consortium, said the legal wording is very vague, and companies may default to the safest approach to circumvent regulatory risks.
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