In the final days of 2024, South Korea’s National Assembly has passed the “ Basic Act on the Development of Artificial Intelligence and the Establishment of Trust” (the AI Basic Act).
The new law makes South Korea the second jurisdiction after the European Union to establish a comprehensive regulatory framework for AI that could set the tone for other countries to follow suit.
The AI Basic Act consolidates 19 separate AI-related proposals from different political factors into a unified framework, aiming to foster AI innovation while addressing ethical, safety and societal concerns.
Key provisions of the Act include transparency requirements, the establishment of ethical guidelines for the use and development of AI and a classification framework to identify high-impact AI systems.
To ensure adherence to the new rules, businesses that fail to comply may face fines of up to 30 million KRW (approximately $20,500).
South Korea’s AI Basic Act mirrors key themes found in the EU AI Act.
Emphasizing a risk-based approach to AI regulation, both frameworks classify AI systems based on their potential impact on human rights and safety, imposing stricter requirements on high-risk or high-impact AI applications.
Additionally, both Acts stress the importance of transparency, ethical guidelines and the establishment of oversight bodies to ensure responsible AI development.
After years of debating the best way to regulate AI, recent legislation passed in the EU and South Korea suggests an emerging international consensus on the best way forward.
While some industry insiders have argued that overregulating could spur innovation, policymakers around the world increasingly recognize the need for dedicated new legislation to govern the technology.
Other jurisdictions, including the U.K. and Japan, are also actively discussing AI legislation, with potential new laws anticipated in 2025. These developments reflect a growing emphasis on robust regulatory frameworks that balance AI innovation with ethical considerations and public safety.