South Korea's Personal Information Protection Commission (PIPC) has escalated its concerns about DeepSeek, confirming that the Chinese AI chatbot communicated with ByteDance, TikTok's parent company1. This revelation comes shortly after the PIPC suspended new downloads of DeepSeek in South Korea, citing data protection issues2. While the extent of data transfer remains unclear, the accusation has intensified scrutiny on DeepSeek's data handling practices3.

The PIPC's actions reflect growing global apprehension about data privacy in AI applications. DeepSeek's legal representatives in South Korea have acknowledged shortcomings in addressing local data protection laws, prompting the company to voluntarily suspend its service2. This incident underscores the challenges AI companies face in navigating diverse international privacy regulations and highlights the increasing focus on data security in the rapidly evolving AI landscape.

Under South Korean law, companies are required to obtain explicit consent from users before sharing their personal data with third parties.1 This legal requirement underscores the seriousness of the allegations against DeepSeek. The accusation of data sharing without proper consent not only raises privacy concerns but also potentially violates local data protection regulations, which could lead to significant legal and financial consequences for the company. This incident highlights the importance of adhering to local data protection laws, especially for international tech companies operating in multiple jurisdictions with varying privacy standards.

In response to the allegations, DeepSeek acknowledged shortcomings in considering local data protection laws and has taken steps to address the issue. The company appointed a legal representative in South Korea to navigate the regulatory landscape and ensure compliance with local data protection standards12. This move demonstrates DeepSeek's recognition of the seriousness of the accusations and its commitment to addressing privacy concerns. The incident has prompted the AI startup to reevaluate its data handling practices, potentially leading to more stringent privacy measures and improved transparency in its operations across different jurisdictions.

The DeepSeek data sharing controversy in South Korea has broader implications for AI privacy globally. Similar investigations and restrictions have been implemented in other countries, with Italy's data protection authority ordering DeepSeek to block its chatbot due to privacy policy concerns1. The United States, Taiwan, and Australia have also taken action, banning or restricting the use of DeepSeek on government devices1. These developments highlight a growing trend of increased scrutiny on Chinese tech companies' data practices, particularly in light of global concerns about data privacy and security. The incident may lead to heightened regulatory oversight of AI companies worldwide, potentially influencing user trust and adoption of AI technologies, especially those developed by companies based in countries with different data protection standards2.