SOUTH KOREA ACCUSES DEEPSEEK OF UNAUTHORIZED USER DATA TRANSFERS

South Korea's Personal Information Protection Commission (PIPC) has accused Chinese AI startup DeepSeek of transferring personal user data to companies in China and the United States without consent, violating the country's data protection laws.

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The findings, announced on April 24, 2025, stem from an investigation launched after DeepSeek's chatbot app, R1, gained rapid popularity in South Korea following its January debut. For app users, privacy advocates, and global regulators, the case highlights the risks of unchecked data practices in the fast-growing artificial intelligence sector, valued as a significant driver of the digital economy.

DeepSeek's R1, praised for rivaling Western AI models like ChatGPT at a fraction of the cost, was removed from South Korean app stores in February after the PIPC flagged privacy concerns. The commission found that between January 15 and February 15, 2025, DeepSeek shared user information, including device details, network data, and AI prompt content, with entities like Beijing Volcano Engine Technology Co., without user permission or disclosure in its privacy policy. The agency estimated that data from 1.5 million South Korean users, based on 50,000 daily active users, may have been improperly transferred.

DeepSeek has since halted some data transfers and pledged cooperation, but the incident has sparked broader scrutiny of AI data security.

The controversy unfolds amid heightened global concerns about data privacy, with South Korea's robust regulations setting a precedent for enforcement. As trade tensions and regulatory pressures mount, DeepSeek's case could influence how AI firms navigate user trust and compliance, shaping the future of data-driven technologies in a privacy-conscious world.

DEEPSEEK'S DATA TRANSFERS VIOLATE PRIVACY LAWS