SOUTH KOREA Trends and Developments Contributed by: Hwan Kyoung Ko, Hyunjun Kim, Kyung Min Son and Matt Younghoon Mok, Lee & Ko
impose enhanced disaster management obliga - tions on major online service providers. In the first enforcement action under these new provi - sions, the MSIT imposed an administrative fine of KRW5 million (approximately USD3,400) on Meta in November 2024 for failing to report an Instagram service outage that occurred in March of that year. Looking ahead, the Korean regulators continue to strengthen their oversight mechanisms. The KCC is pursuing amendments to the Telecom - munications Business Act that would double the maximum administrative penalty for forced in-app payment practices from 3% to 6% of relevant revenue. This proposed enhancement, particularly targeting practices by companies like Google and Apple, reflects South Korea’s determination to maintain regulatory effective - ness comparable to other major jurisdictions, including the European Union. Development related to artificial intelligence regulations Establishment of the AI Framework Act As major economies worldwide continue to develop their AI regulatory frameworks, South Korea emerged as a frontrunner by enacting comprehensive AI legislation in 2024. Following the EU’s adoption of the AI Act in early 2024, South Korea became the second jurisdiction globally to establish a comprehensive AI regu - latory framework with the passage of the AI Framework Act by the National Assembly on 26 December 2024. The AI Framework Act is scheduled to take effect one year after its prom - ulgation. The legislative process reflected a careful bal - ance between promoting innovation and ensur - ing adequate safeguards. While the govern - ment and industry stakeholders advocated for
an innovation-focused approach with minimal regulation, civil society groups emphasised the need for robust safety measures and the protec - tion of public interests. The resulting framework primarily focuses on promoting South Korea’s AI industry while incorporating specific regula - tory measures, particularly for high-impact AI systems that parallel the EU AI Act’s “high-risk AI” concept. The AI Framework Act defines several key con - cepts as follows: Artificial intelligence (AI) system An AI-based system that produces inferences, recommendations, decisions, or other outputs affecting real or virtual environments for given objectives, with varying levels of autonomy and adaptability. High-impact AI AI systems that may significantly impact or pose risks to human life, physical safety, or fundamen - tal rights, operating in sectors specified by the AI Framework Act, including: • energy supply; • the healthcare provision and operation sys - tem; • digital medical device development and use; • biometric information analysis/utilisation for criminal investigation or arrest; • judgments or evaluations significantly affect - ing individual rights/obligations (eg, recruit - ment or loan screening); • major operation of transportation vehicles, facilities and systems; and • other areas specified by the Enforcement Decree that significantly impact human life, physical safety and fundamental rights.
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