South Korea’s data watchdog has accused Chinese AI firm DeepSeek of mishandling user information during its January launch in the country. The Personal Information Protection Commission (PIPC) reported that DeepSeek transferred user data abroad without proper consent, violating local privacy laws.
The PIPC revealed that the app, developed by Hangzhou DeepSeek Artificial Intelligence Co. Ltd, sent device, network, and user-inputted AI prompt data to third-party companies, including Beijing Volcano Engine Technology Co. Ltd, without obtaining clear approval from users.
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In response to these violations, South Korean authorities halted new downloads of the app in February. While DeepSeek admitted it had not fully complied with local privacy regulations, the company claimed that the data transfer was intended to enhance user experience. It later stated that as of April 10, it had ceased sending AI prompt content overseas.
Despite this move, South Korea’s commission has now ordered DeepSeek to delete any prompt data previously transmitted and to establish a legal framework for future international data transfers. The case underscores increasing global pressure on AI companies to align with regional privacy norms.
In a statement, China’s Foreign Ministry defended its domestic firms, saying the government does not direct companies to illegally collect or store personal data. However, the incident adds to the mounting concerns over how global AI platforms manage sensitive information across borders.
