South Korea unveils sweeping AI rules aimed at trust, safety

South Korea has introduced one of the world’s most wide-ranging regulatory frameworks for artificial intelligence, seeking to protect citizens while laying what officials call a “foundation for trust” in an AI-driven society. The new laws regulate companies and systems rather than individual users and span sectors from finance to critical infrastructure.

Under the rules, companies must disclose when AI is used in services that affect people directly, such as systems that screen applicants for loans or jobs. Users must be informed—often through pop-up alerts—that a service is powered by AI algorithms. In areas linked to human safety, including drinking water production and nuclear facility management, AI use must be explicitly disclosed. Firms are also required to explain how their AI systems make decisions if requested, and to ensure humans can intervene when necessary, The Wall Street Journal writes. 

The legislation further mandates clear visual or audible labels for AI-generated content that could be mistaken for real life, such as images, audio, or video. For creative works made with AI, including games or animations, labeling can be less intrusive, for example through embedded metadata. Alongside restrictions, the law includes measures intended to support the growth of South Korea’s AI industry.

Globally, governments are taking different approaches to regulating AI. The European Union began implementing AI-related rules last year, with the core of its landmark AI Act set to roll out in phases starting in August. The United States has no comprehensive federal AI law, though the White House recently issued an executive order aimed at curbing state regulations seen as overly restrictive. China has incorporated ethics and risk-monitoring provisions into its cybersecurity framework.

South Korea’s approach will be closely watched as an early attempt by a major economy to rein in rapidly expanding AI use. Some local startups have criticiыed the rules as vague and warned they could slow innovation. Violations can carry fines of up to 30 million won (about $20,400) and orders to correct offending practices, though the government has granted a grace period of at least one year to refine enforcement.

By Sabina Mammadli