SOUTH KOREA Trends and Developments Contributed by: Hwan Kyoung Ko, Hyunjun Kim, Kyung Min Son and Matt Younghoon Mok, Lee & Ko
tions by dominant platform operators, enabling enhanced sanctions based on retrospective assessment rather than pre-designation. On the other hand, the KCC announced in May 2023 its plans to pursue the “Platform User Pro - tection Act” (tentative name) to protect platform users from illegal content and privacy infringe - ments. This initiative parallels the EU’s Digital Services Act and represents another significant development in Korea’s evolving platform regu - lation landscape that warrants continued moni - toring by stakeholders. Considerations for foreign businesses The recent developments in South Korea’s TMT regulation framework have significant implica - tions for foreign businesses. Understanding and implementing appropriate compliance meas - ures is particularly crucial, as these regulations explicitly emphasise their application to foreign entities affecting the Korean market. In the data privacy realm, foreign business - es should pay special attention to the PIPC’s strengthened enforcement stance, as evidenced by the substantial penalties imposed on global companies in 2024. Companies should estab - lish robust compliance mechanisms for personal data processing.
For AI service providers, the AI Framework Act’s explicit extraterritorial application requires care - ful attention. Foreign companies meeting certain thresholds must designate a domestic repre - sentative in South Korea and ensure compliance with various obligations, including transparency requirements for AI-generated content and spe - cific measures for high-impact AI systems. Par - ticularly noteworthy is the requirement to assess whether their AI services qualify as high-impact AI, and implement appropriate safety and trust - worthiness measures. Companies should also closely monitor the development of pending leg - islation, including the KCC’s “AI User Protection Act” and its guidelines on generative AI services. Regarding platform regulations, foreign busi - nesses should prepare for the evolving regula - tory landscape shaped by multiple authorities. This includes continuous monitoring of the MSIT’s targeted regulation approach, prepar - ing for the KFTC’s enhanced platform compe - tition oversight, and ensuring compliance with the KCC’s user protection requirements. Close attention should be paid to the legislative pro - gress of various proposed regulations, including the “Platform Fair Competition Promotion Act” and the “Platform User Protection Act”.
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