South Korea Restricts Access to Chinese AI DeepSeek Amid Security Concerns

South Korea has temporarily banned government employees from accessing DeepSeek, a Chinese artificial intelligence startup, over national security concerns. The Ministry of Trade, Industry, and Energy (MOTIE) confirmed the restriction on Wednesday, signaling growing caution over the use of generative AI in government and corporate sectors.

This move aligns with a broader global trend of scrutinizing AI platforms for potential data privacy and security risks. It follows Australia’s warning last month about DeepSeek and ongoing U.S. investigations into the company’s implications for national security. As generative AI becomes more integrated into daily work, governments and corporations worldwide are balancing its benefits with concerns over data exposure and foreign influence.

Why South Korea is Cracking Down on DeepSeek

The South Korean government’s notice, issued on Tuesday, advised ministries and agencies to exercise caution when using AI services, including DeepSeek and OpenAI’s ChatGPT. This advisory led to immediate actions:

• Korea Hydro & Nuclear Power, a state-run entity, blocked access to AI services like DeepSeek earlier this month.
• The Foreign Ministry restricted DeepSeek usage on computers connected to external networks, though officials declined to confirm specific security measures.
• The Personal Information Protection Commission announced plans to question DeepSeek about its user data management practices.

South Korea’s move underscores rising concerns about AI-powered data collection and the potential risks of foreign-developed AI systems in sensitive industries.

DeepSeek’s Disruptive Entry into the AI Market

DeepSeek’s rapid rise has unsettled the global tech landscape. The Chinese startup’s latest AI models, launched last month, claim to rival or outperform American counterparts—at a fraction of the cost. This affordability has triggered speculation about its potential to disrupt the AI industry, particularly in markets where cost-effective solutions are highly sought after.

However, this cost advantage has also raised red flags. Countries like Australia and the U.S. are closely monitoring the company’s operations, wary of possible data security vulnerabilities and geopolitical risks. South Korea, home to tech giants like Samsung and SK Hynix, is now joining this cautious approach.

Corporate South Korea’s Response to AI Security Risks

Beyond government agencies, South Korea’s corporate sector is also reacting to DeepSeek’s rise with heightened vigilance:

• Kakao Corp, a leading South Korean tech company, has advised employees to avoid using DeepSeek due to security concerns. This decision comes just a day after Kakao announced a partnership with OpenAI, DeepSeek’s major U.S. competitor.
• SK Hynix, a global leader in AI chip manufacturing, has imposed restrictions on generative AI usage, allowing only limited access when necessary.
• Naver, South Korea’s largest internet company, has instructed employees to avoid using AI services that store data externally.

These corporate measures reflect a broader strategy to mitigate data security risks while maintaining technological competitiveness in the AI-driven economy.