SOUTH KOREA Trends and Developments Contributed by: Hwan Kyoung Ko, Hyunjun Kim, Kyung Min Son and Matt Younghoon Mok, Lee & Ko
cific guidance has emerged from other regula - tory bodies, with the Ministry of Food and Drug Safety issuing guidelines regarding AI medical devices, and the Ministry of Culture, Sports and Tourism providing guidance on generative AI copyright issues. Furthermore, the KCC is currently developing two key initiatives: • the “Guidelines for Responding to New User Damages from Generative AI Services” (tenta - tive name), which introduces self-regulatory measures focusing on enhanced transpar - ency of training data, ensured explainability, and filtering measures for illegal and harmful content; and • the “AI User Protection Act” (tentative name), which includes provisions for differential regulation by AI type, mandatory labelling of AI-generated content, and the right to request an explanation. Development related to online platform regulations Legislative discussions regarding online platform regulations continue to evolve in South Korea, with three regulatory authorities pursuing dis - tinct approaches. The MSIT is advancing a self- regulation-focused policy for online platforms classified as “value-added telecommunications service providers” while introducing targeted regulations to enhance regulatory clarity. Mean - while, the KFTC is developing platform-specific competition regulations similar to the EU’s Digi - tal Markets Act (DMA), and the KCC is pursuing user protection measures akin to the EU’s Digital Services Act (DSA).
MSIT’s dual approach: self-regulation and targeted regulation The MSIT has primarily promoted self-regula - tion in the online platform market, emphasising public-private co-operation while addressing ecosystem issues without impeding innovation. On 28 June 2024, the MSIT proposed amend - ments to the Telecommunications Business Act to establish legal frameworks for self-regulation by value-added telecommunications service providers and their associations, with govern - ment support measures. This bill is currently under parliamentary review. In parallel with this self-regulatory approach, the MSIT is also pursuing “targeted regulation” through additional amendments to the Telecom - munications Business Act. The ministry is cur - rently determining specific regulatory areas, sub - jects, and prohibited conduct types that would be subject to such targeted oversight. KFTC and KCC platform regulation initiatives The KFTC initially announced plans on 19 December 2023, to enact the “Platform Fair Competition Promotion Act” to effectively regu - late abuse of market dominance. The original proposal involved pre-designating certain busi - nesses as “dominant platform operators” and monitoring four main types of violations: self- preferencing, tying, multi-homing restrictions, and most-favoured-nation requirements. However, in September 2024, after reviewing input from industry stakeholders, experts and rel - evant agencies, the KFTC modified its approach. Rather than adopting a pre-designation system through special legislation similar to the EU DMA, the KFTC decided to pursue amendments to the Monopoly Regulation and Fair Trade Act. This revised approach would establish a post- facto presumption mechanism for certain viola -
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