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South Korea Suspends Chinese AI App DeepSeek amid Data Privacy and Security Concerns

Photo: Ahn Young-JoonAssociated Press

South Korea has for the time being halted the download of the Chinese created AI chatbot,  DeepSeek because of data protection concerns and security risks. The decision has also led to discussions on the current state of and future of AI regulation, digital sovereignty and the ongoing geopolitical fight for next generation technologies.  Other nations including Taiwan and Australia have also restricted the use of the app on government devices for the same reasons. The Chinese AI company created DeepSeek and the app rose to the number one spot on the global download charts few weeks after it was launched. The app is also said to have been built using fewer and lower-quality computer chips than those of American companies, but it is almost as intelligent as their  leading products. The unexpected popularity of DeepSeek created a shock wave in the technology sector especially to America which had always pride itself as the leading AI power. The app has a large language model that can reason as well as GPT-4 but at a much lower cost, which is a cause of concern in regards to the future of AI. On Monday, the South Korean government said it would not allow new installations of DeepSeek for the time being, because the regulators needed to confirm that the app  does not violate the data protection laws of South Korea. The app was taken down from the Apple App Store and Google Play Store in South Korea but the app is still available for use through browsers.

The South Korea’s Personal Information Protection Commission pointed out some issues with regard to the data processing of  DeepSeek, and stated that any corrections that would be necessary would take some time to implement. The main focus  of the commission is on the app’s processing of user’s personal data and information and whether it is  compatible with the data protection standards of the country.
Download of new copies is blocked, but existing users  can still use the app or navigate to the app via DeepSeek’s web page. The regulators also  noted that a number of governments and corporations in South Korea have already placed DeepSeek on their restricted lists  or have told their employees not to use the app because of data collection and transparency with third party data  transfers.
According to Wiseapp Retail, DeepSeek was downloaded about 1.2 million times in  South Korea in the fourth week of January and was the second most popular AI chatbot in the country  after OpenAI’s ChatGPT.
The popularity of DeepSeek in South Korea created the concern among  regulators over security, censorship and data management. The South Korean government has already told its workers not to  use DeepSeek on state-owned devices, a policy that has been adopted by the government of Taiwan and  Australia. The Australian government explained that it prohibited the app because it posed a high degree of risk to  national security.
Italy’s regulator, which briefly banned ChatGPT in 2023, has also  restricted DeepSeek and asked the company to overcome the privacy issues before it can be allowed to operate.  The user data storage issue has also been a concern to the data protection authorities in France and Ireland and  they have asked DeepSeek about the location of the servers.
The analysis of DeepSeek is related to  other debates on the use of AI technologies that deal with personal data. As chatbots powered by AI  are integrated into people’s daily conversations, the concerns on how the data is being gathered, stored and  used have become more significant.
The confidence in the tech industry was shaken by the app, namely because  of the claim that Chinese companies can develop their AI technology with far fewer high-end chips than American AI  giants. Last month, US tech stock prices fell as investors began to reassess the situation with regards  to the competition in the field of AI development and the Chinese company’s potential to develop semiconductor products despite  the sanctions.
The parent company of the app has been formed, and it has become a popular company  after the recent increase in its popularity. Backed by a stock trading firm, DeepSeek was not  a popular app before it became popular recently. In China, the company has been praised for being a  technological pioneer and Liang Wenfeng, the founder of the company, has recently met with  China’s supreme leader Xi Jinping and other tech CEOs.
The current state of the government in the US has  seen Texas, Virginia, and New York ban the use of DeepSeek for government employees. Moreover,  lawmakers in the United States have introduced a bill that would prevent DeepSeek from being used on federal devices  because of concerns about surveillance.
The Chinese government has come out to defend its AI companies’ overseas  operations, claiming that they are fully compliant with the laws and regulations of the host countries. Beijing’s spokesman  Jiakun Guo told South Korea and other nations not to politicize economic, trade, and  technological issues.
This is in line with the broader conflict between AI technologies developed by Chinese companies and foreign  regulators. The worries that Korea raised are similar to those of the US and India, which have restricted the use of Chinese digital platforms, reflecting the geopolitical dimension of regulating AI technology.
South Korea’s actions  are in line with the global trend of increased vigilance of foreign AI products. Most countries are still  struggling with how to allow and regulate the use of such technologies while protecting national security and personal data.
 The U.S. has also implemented similar restrictions, for instance, banning TikTok for government devices over  concerns of data privacy and potential coordinate influence operations. India has gone further and prohibited dozens of Chinese apps  based on cybersecurity risks. The European Union has also adopted strict AI and data protection rules that require companies  using AI to be more transparent and accountable.
South Korea’s response to DeepSeek shows that there is  a growing international understanding that any AI application that deals with personal data must meet strict local compliance requirements.  This could be a precedent for other governments thinking about taking regulatory action against foreign AI services.
However,  the regulatory review process may take time, and although DeepSeek may make the necessary changes, the reputation  has been damaged. The competition in the South Korean market may be reduced by users’ confidence in the  platform as well as local AI companies.
The South Korea’s Personal Information Protection Commission suggested that users who  have already installed the app should consider deleting it or not to provide any personal details until all the issues  are addressed.
The Chatbot created in China, DeepSeek, has been temporarily disabled  in South Korea due to concerns about the compliance of the application with data protection laws and security risks.  The decision has also led to discussions on the current state of and future of AI regulation, digital sovereignty and the ongoing geopolitical fight for next generation technologies. Taiwan and Australia have also restricted the use of the app on government devices for similar reasons.
By Keyeon Fan

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