South Korea Artificial Intelligence (AI) Basic Act

South Korea’s recently enacted Act on the Development of Artificial Intelligence and Establishment of Trust (AI Basic Act)—set to take effect in January 2026—marks a pivotal development for U.S. companies operating in or entering the Korean Artificial Intelligence (AI) market. As the second country after the European Union to adopt a comprehensive AI regulatory framework, Korea is positioning itself as a global leader in trustworthy and innovative AI, while creating both opportunities and new compliance requirements for U.S. companies.

South Korea passed the AI Basic Act in December 2024, intended to provide a legal framework to advance Korea’s national competitiveness in AI while ensuring ethical standards and public trust. The act establishes legal grounds for establishing a national AI control tower, an AI safety institute, and various governmental initiatives in R&D, standardization, and policies. The legislation also mandates separate initiatives to support the national AI infrastructures, including training data and data centers, and fostering SMEs, startups, and talent in the AI field.  More importantly, the act assigns transparency and safety responsibilities to businesses that develop and deploy “high impact” AI and generative AI. For example, the law requires businesses to implement AI risk assessment, a set of safety measures, and the designation of a local representative. For the full text of the AI Basic Act, please find the link here (Korean).

The ROK Ministry of Science and ICT (MSIT) is currently drafting the subordinate regulations, which are expected to be released in the first half of 2025.  Although the Minister of MSIT recently (April 2025) reaffirmed the government’s position is to keep minimum regulations, this law may present both an opportunity and a potential regulatory challenge for American AI businesses operating in South Korea. As detailed guidelines are being developed, public discussions or consultations with industry stakeholders may also take place. If you have any comments regarding the AI Basic Act or the upcoming subordinate regulations, you are encouraged to contact the Ministry of Science and ICT.

For more information on South Korea’s AI landscape, please contact the U.S. Commercial Service at Office.Seoul@trade.gov.