Seoul: South Korea’s data protection authority has announced plans to investigate Chinese artificial intelligence (AI) startup DeepSeek over potential privacy risks. The Personal Information Protection Commission (PIPC) will send an official inquiry to DeepSeek’s headquarters in China, seeking details about its data collection and usage policies.
Concerns Over Personal Data Collection
The PIPC’s decision comes after a sharp rise in South Korean users of DeepSeek and growing concerns over data security. Authorities are particularly worried about how the company collects and processes personal data for AI model training. The commission will request specific information on DeepSeek’s privacy policies and how it handles sensitive user information.
A PIPC official stated, “Depending on the response from DeepSeek, we will decide on further actions, which may include a more detailed investigation if necessary.”
DeepSeek: Privacy Policy Raises Red Flags
International reports have highlighted concerns over DeepSeek’s data collection practices. According to the company’s privacy policy, it collects a wide range of personal information, including:
- User names, birth dates, email addresses, and phone numbers
- Passwords and chat histories
- Keyboard input patterns and audio data
- Uploaded files for AI model training
DeepSeek also states that it reserves the right to share this data with law enforcement and public agencies at its discretion. These policies have led to fears about potential data misuse and unauthorized access.
Global Response to DeepSeek Practices
Governments and companies worldwide are taking action to restrict access to DeepSeek due to concerns over data privacy. Several organizations have reportedly blocked the platform to prevent potential data leaks.
The growing concerns over DeepSeek have also affected South Korea’s financial markets. Following a weeklong holiday, South Korean stocks dropped sharply, with technology shares facing major losses. The Korean won also declined significantly against the U.S. dollar.
Foreign investors sold shares worth 1.2 trillion won, while retail investors and institutions purchased stocks worth 1.16 trillion won combined. Analysts believe that uncertainty surrounding AI regulations and data privacy concerns contributed to market instability.
Actions by South Korean Authorities
The PIPC has emphasized that if DeepSeek fails to provide satisfactory answers regarding its data collection and privacy practices, further action will be taken. This could include launching an official investigation or implementing restrictions on the company’s operations within South Korea.
As AI-powered platforms continue to grow, concerns over data security remain a top priority for regulators worldwide. The outcome of South Korea’s inquiry into DeepSeek could set a precedent for how global authorities handle AI-driven data collection in the future.
