South Korea has announced a ban on new downloads of DeepSeek, a Chinese artificial intelligence (AI) application, due to concerns over user data privacy. The South Korean Personal Information Protection Commission found that DeepSeek was transmitting data to ByteDance, the parent company of TikTok, without user consent. This move makes South Korea the second country, after Italy, to restrict DeepSeek, underscoring the growing tension between AI innovation and data privacy regulations.
DeepSeek, one of China’s rising AI firms, developed the DeepSeek-R1 model, which is considered a competitor to OpenAI’s GPT-4. While the model boasts high efficiency at a lower computational cost, the controversy surrounding DeepSeek is not about its technological capabilities, but rather its handling of user data.
The investigation revealed that DeepSeek failed to adequately disclose how it collects, stores and shares data. Moreover, it allegedly tracked user keystrokes, raising concerns about mass surveillance. As a result, South Korea’s regulators ordered DeepSeek to halt new downloads on Feb. 15, allowing resumption only if it complies with data privacy laws.
The ban is not merely an AI privacy issue; it also reflects South Korea’s increasing vigilance toward Chinese tech influence. The South Korean government has previously scrutinized Chinese tech firms, including an ongoing investigation into Temu, a Chinese e-commerce platform, for potentially collecting excessive user data.
This heightened scrutiny aligns with a broader global trend of caution toward Chinese technology. The EU has introduced the AI Act, mandating transparency in AI data processing, while the US has raised national security concerns over AI services linked to China. The evolving AI landscape is no longer just about technological competition, but has become a battleground for regulatory compliance and geopolitical strategy.
For Taiwan, this development is particularly significant. DeepSeek has been expanding rapidly in Asia, and its entry into the Taiwanese market could introduce similar risks. While Taiwan has yet to investigate DeepSeek, the government has previously enforced strict regulatory measures against Chinese tech firms such as TikTok and Huawei to prevent the leakage of sensitive data. South Korea’s decision should prompt Taiwan to reassess its AI regulatory framework, particularly regarding Chinese AI applications and their implications on data sovereignty and information security.
Additionally, this incident highlights Taiwan’s strategic choices in AI development. South Korea has been aggressively advancing its domestic AI sector, aiming to rank among the world’s top three AI nations. To reduce reliance on Chinese technology, it is strengthening collaborations with the US and Japan. Taiwan follows a similar path, emphasizing AI semiconductor development, cloud computing and AI governance to maintain its competitive edge.
As AI technology evolves rapidly, Taiwan must balance data security with AI innovation, ensuring that it is not overly dependent on foreign AI giants, whether from the US, China or elsewhere.
The key question now is whether DeepSeek would revise its data policies to comply with South Korean regulations or abandon the market altogether. While the ban is temporary, a regulatory-compliant approach could allow DeepSeek to re-enter.
However, the broader issue remains: Would AI development continue to prioritize open innovation, or would it shift toward stricter regulatory oversight? The future of AI is not just about computing power and algorithms, but also about compliance and market trust. South Korea’s decision could set a precedent for AI governance worldwide, influencing how AI companies manage data, adapt to regulatory environment, and balance innovation with legal accountability.
Should Taiwan follow South Korea’s lead, or should it develop its own regulatory framework? Taiwan cannot afford to remain passive in this technology regulation tug-of-war. Its AI policy decisions will shape its role in the global tech landscape, determining whether it could assert its position as a leader in AI innovation while safeguarding national security and data privacy.
Elaine Ko is the chief officer of operations at the Taiwan NextGen Foundation, specializing in Taiwan’s political and international affairs, Taiwan-Korea relations and human rights.
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