South Korea Flags Chinese AI Firm DeepSeek for Unauthorized Data Transfers

South Korea Flags Chinese AI Firm DeepSeek for Unauthorized Data Transfers

SEOUL, April 24 — South Korea’s data protection authority has raised concerns over Chinese artificial intelligence startup DeepSeek for transferring user data and AI-generated prompts without proper user consent while the app was still available in the country’s app market.

In an official statement released Thursday, the Personal Information Protection Commission (PIPC) said Hangzhou DeepSeek Artificial Intelligence Co Ltd violated South Korea’s data privacy laws during its January launch by transmitting personal information to several companies based in China and the United States without first obtaining user approval.

The controversy prompted swift regulatory action. In February, South Korea’s data agency suspended new downloads of the DeepSeek app, citing the company’s acknowledgment of its failure to comply with key privacy protection regulations.

The PIPC added that DeepSeek also transferred AI prompt content, entered by users, to Beijing Volcano Engine Technology Co. Ltd., along with information related to devices, networks, and apps. DeepSeek later claimed the transfer was meant to enhance user experience, but told the agency that it had ceased the transfer of prompt content as of April 10.

In response to the violations, the PIPC has issued a corrective recommendation, urging DeepSeek to immediately delete all AI prompt content previously sent to Volcano Engine and to establish a legal framework for international data transfers moving forward.

The incident highlights increasing scrutiny over cross-border data handling by AI companies, as countries like South Korea tighten regulations to protect user information in the digital age.