AI Regulation in South Korea: Navigating the New Risk-Based AI Governance Model
A brief overview of AI regulation in South Korea's new AI Basic Act. Learn compliance requirements, implementation timeline & business impact.
A Practical Guide for Organisations Preparing for the AI Basic Act which will be effective in January 2026
South Korea is emerging as one of the world's most advanced jurisdictions for AI governance. With the passage of the AI Basic Act in late 2024 and a strong national AI strategy updated through 2025, the country has moved toward a unified, risk-based framework that supports innovation while ensuring transparency, safety, human oversight, and public trust. The Act, formally titled the Basic Law on the Development of Artificial Intelligence and Creation of Trust Base, takes effect in January 2026 and applies to both domestic and foreign organisations providing AI systems to Korean users. For businesses entering or operating in Korea, this law introduces clear expectations on documentation, transparency, risk evaluation, and lifecycle governance while maintaining moderate penalties and strong government support.
South Korea's Regulatory Model: Vision and Scope
South Korea's approach combines promotion + regulation, aiming to position the country among the world's top three AI powerhouses ("AI G3") by 2030. The AI Basic Act is designed to:
- Strengthen national competitiveness through trusted AI development
- Ensure ethical and human-centred deployment
- Protect citizens from harmful or opaque AI systems
- Support sustainable growth of the Korean AI industry
The Act applies to any organisation whose AI system affects Korean markets or users, regardless of where development occurs. Defence and military AI remain exempt.
Key Regulatory Principles
Following are the key regulatory principles in this act:
1) Transparency and Accountability
Organisations must maintain clear documentation describing how AI systems function, make decisions, and manage risks. User-facing disclosures become mandatory for high-impact and generative AI systems.
2) Human Oversight
Critical or high-impact systems such as those used in healthcare, energy, public services, or safety-sensitive contexts must include human-in-the-loop or human review capabilities.
3) Fairness and Non-Discrimination
AI must be designed to avoid unjust bias, particularly in employment, finance, public administration, and access-to-services contexts.
4) Privacy and Data Protection
The Personal Information Protection Act (PIPA) remains fully applicable. Organisations must ensure lawful data processing, security safeguards, minimisation, and consent where required.
South Korea's governance architecture for AI is anchored by two institutions established in 2024 that together form the backbone of the country's emerging AI assurance ecosystem.
The National AI Committee, operating under the President's Office, serves as the central coordinating body for national AI policy. It oversees the implementation of the national AI strategy, drives public–private collaboration, harmonises regulatory approaches across ministries, and represents South Korea in international AI governance initiatives.
Complementing this strategic body is the AI Safety Institute, a dedicated research centre responsible for evaluating advanced AI models, developing safety benchmarks, addressing deepfake and cybersecurity threats, and partnering with global organisations on AI safety research. Through the combined work of these institutions, South Korea is building a coherent, internationally aligned system for trustworthy, safe, and innovation-friendly AI governance.
Institute jointly steer national AI strategy, regulatory coordination, and safety oversight across the country.
Alignment with Global Regulatory Regimes
Compared with the EU AI Act following are the similarities and the differences worth noting:
Similarities:
- Risk-based classification
- High-risk AI duties (documentation, oversight, monitoring)
- Transparency for generative AI
- Lifecycle risk management
Key Differences:
- Korea does not prohibit any AI uses (EU bans certain systems)
- Penalties are more moderate
- Stronger emphasis on AI promotion and national competitiveness
- Fewer CE-style conformity assessment mechanisms
Compared with the United States
Following the U.S. shift toward a more market-driven, light-touch model in 2025, Korea offers the opposite approach:
- A comprehensive law
- State-led supervision
- Mandatory transparency and oversight obligations
- Clear government investment programmes
Multinational companies must adjust their systems to meet Korea's more structured requirements.
Business Obligations Under the AI Basic Act
Systems considered high-impact (public decision-making, healthcare, transport, energy, nuclear operations, credit decisions, etc.) must undergo:
- Pre-deployment impact assessments
- Risk evaluation and documentation
- Human oversight design
- User notifications
- Continuous monitoring and incident reporting
Applies to text, image, audio, and video generation models:
- Clear disclosure that content was produced by AI
- Prevention of harmful impersonation or realistic manipulation
- Additional obligations for deepfake content
Similar in spirit to EU Fundamental Rights Impact Assessments, these must evaluate:
- Human rights risks
- Societal and economic impacts
- Safety and cybersecurity
- Environmental effects
Assessments must be documented, updated, and available to regulators.
Compliance Challenges
Following are the challenges worth taking a note:
1) Technical Complexity
- System classification requires sector knowledge
- Documentation standards remain detailed and evolving
- Monitoring and logging obligations can be resource-intensive
2) Organisational Challenges
- Limited internal expertise on Korean regulatory expectations
- Local representation required for foreign operators
- Cross-border harmonisation for global AI models
Government Support to Accelerate AI Innovation
South Korea combines strict governance with major national investment. Key investments are as follows:
1) Infrastructure
- Up to KRW 4 trillion for the National AI Computing Center (through 2030)
- 15x expansion of national GPU capacity
- Long-term investment in AI semiconductors
2) Private-Sector Incentives
- KRW 65 trillion in AI-related private investment (2024–2027)
- Tax credits and policy financing
- Low-interest loans for AI infrastructure
3) Talent Strategy
- A goal of 200,000 AI professionals by 2030
- New education and training programs
- Startup and unicorn support initiatives
Enforcement and Penalties
Penalties under the AI Basic Act remain moderate compared to the EU AI Act:
- Maximum fine: KRW 30 million (~USD 20,500)
- Corrective actions, audits, and incident reporting obligations
- Proportionality for SMEs
This reflects a support-first rather than punitive model.
Preparing for Compliance: What Organisations Should Do Now
With the Act taking effect in 2026, 2025 is the critical preparation year.
Step 1: Assess Your AI Systems
- Create an inventory
- Identify high-impact uses
- Map cross-border deployments that touch Korean users
Step 2: Conduct a Readiness Gap Analysis
- Documentation
- Governance structure
- Monitoring systems
- Human oversight design
Step 3: Implement Governance Controls
- AI policy framework
- Risk assessments
- AIIAs
- Technical and organisational safeguards
- Training programs for teams
Step 4: Adopt Global Standards
Standards that align closely with Korean requirements include:
- ISO/IEC 42001 (AI management systems)
- ISO/IEC 23894 (AI risk management)
- ISO/IEC 25059 (AI quality)
- ISO/IEC 24368 (AI overview and terminology)
These help create documentation and controls that regulators increasingly expect. The ISO/IEC 42001 standard provides a comprehensive framework for establishing AI management systems that align with regulatory requirements.
How Nemko Supports Organisations Operating in Korea
Nemko Digital helps organisations prepare for the AI Basic Act through:
- Regulatory mapping across AI, data protection (PIPA), cybersecurity, and product laws
- Applicability assessments for high-impact and generative AI
- Lifecycle risk management frameworks aligned with ISO/IEC 42001
- Documentation and evidence models for transparency, monitoring, and reporting
- AI Trust Mark certification and digital trust evaluations
- Cross-jurisdictional compliance strategies for global products
With our experience across the EU AI Act, Singapore Model AI Governance Framework, NIST AI RMF, and national AI strategies, we help organisations build an integrated and scalable AI governance programme that works in Korea and beyond.
Navigate South Korea's AI Regulation With Confidence
The AI Basic Act marks a milestone in global AI governance, offering a structured, forward-looking framework that organisations must already be prepared for January 2026. By acting early—conducting assessments, adopting global standards, and establishing governance structures—businesses can reduce risk, accelerate trust, and unlock opportunities across Korea's rapidly expanding AI ecosystem.
Want support in preparing for South Korea's AI Basic Act? Contact Nemko Digital's AI governance specialists to begin your compliance journey.