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On December 26, 2024, South Korea’s National Assembly passed the Act on the Development of Artificial Intelligence and Establishment of Trust (AI Basic Act), which establishes a structured framework for AI governance. The legislation introduces regulatory measures to oversee AI implementation, promote industrial innovation and address risks associated with the deployment of AI.

A key provision of the act is the creation of a National AI Committee that’s responsible for supervising AI-related societal integration and industrial development. Additionally, the Minister of Science and ICT must develop and execute an AI Basic Plan every three years, in order to ensure a coordinated and forward-looking approach to AI policy.

The law provides support for the construction of testing facilities, equipment and systems to facilitate AI validation and performance testing. AI system developers must maintain detailed documentation on safety and reliability measures, while national and local governments are encouraged to assist private sector projects in the testing and validation efforts.

The purpose of the AI Basic Act is to balance AI innovation with safety, transparency and maintain public trust by introducing these measures.

The Bigger Picture

The AI Basic Act marks a significant step in South Korea’s AI governance, reflecting both domestic policy evolution and global regulatory trends. South Korea's approach to AI regulation has developed gradually, beginning with the  in 2023, which outlined fundamental principles for digital technologies, including AI.

In 2019, the government released the  which set out a comprehensive framework to position the country as a competitive force in AI development. The strategy outlined action plans across three main pillars: AI ecosystem development, secure world-class AI competitiveness, and enhancing people-centred AI. This was then followed up by the  in 2020, which addressed fairness, transparency and accountability in AI systems. As concerns over AI risks grew globally, South Korea strengthened its regulatory focus, particularly after the  was released in 2022, which emphasised the country’s investment into AI. This strategy included developing a neural processing unit, supercomputers and hyper-scale AI models, which they planned on executing from 2023. 

By 2023, South Korea had been actively engaging in international AI governance discussions. For instance, the meeting between  in June 2023 highlighted growing concerns about AI’s rapid development. Later that year, South Korea participated in the  in the UK, where major economies discussed regulatory frameworks for AI risks. The following May, South Korea co-hosted the  with the UK, which resulted in the  policy paper, which reinforced commitments to responsible AI development across multiple nations.

These developments culminated in the passage of the AI Basic Act, which establishes a National AI Committee to oversee AI policy, mandates the creation of an AI Basic Plan every three years, and introduces regulatory requirements for high-impact AI systems. This reflects South Korea’s focus on fostering AI innovation while addressing ethical and safety concerns, which aligns with broader global efforts to establish AI governance frameworks.

Why Should You Care?

South Korea's AI Basic Act establishes a comprehensive framework to regulate and promote artificial intelligence within the country. 

Key Points to Consider: 

• : Businesses integrating high-impact or generative AI systems into their offerings must inform users in advance that their products or services are AI-driven. When providing generative AI-based products or services, they must clearly disclose that the output has been artificially generated. Additionally, any AI-generated content, including deepfakes, must be explicitly labelled to indicate its artificial nature.
• : Providers of large-scale AI systems must establish processes to identify, evaluate and mitigate risks throughout the AI life cycle. They must also develop a monitoring and risk management system, and report their implementation results to the Minister of Science and ICT (referred to as the Minister). 
• : The law mandates that AI systems must not endanger human life, health or overall wellbeing – therefore embedding ethical principles into AI development whilst ensuring human oversight. Providers of large-scale AI systems are required to identify, assess and mitigate risks throughout the AI life cycle, while also implementing a monitoring and risk management system and reporting their results to the Minister. 

Next Steps

Following the AI Basic Act’s promulgation in January 2025, it is set to take effect on . Designed to accompany rapid technological advancements, the act establishes clear ethical standards and regulatory frameworks to guide the development and deployment of artificial intelligence. Doing so aims to ensure the responsible use of AI, protect individual rights, and maintain consumer trust in emerging technologies.

Firms should consider the following to effectively adapt to the act:

• Establish compliance frameworks: Conduct internal audits to ensure AI systems align with the act’s reliability, safety and ethical standards. Develop compliance policies covering risk assessment, transparency and human oversight.
• Implement risk management systems: Build a continuous monitoring and risk management system to detect and address any potential issues.
• Strengthen human oversight: Assign human supervisors to high-impact AI systems in order to monitor decisions, intervene when necessary and implement mechanisms to review and validate AI outputs.
• Invest in AI security and reliability: Perform periodic vulnerability assessments and penetration testing to identify weaknesses in AI models and infrastructure, such as potential risk of cyberattacks. Establish incident response plans to quickly address security breaches and AI malfunctions.

Preparing for the AI Basic Act’s full implementation in 2026 will ensure regulatory compliance and position businesses for sustained growth, market competitiveness and leadership in AI-driven innovation.

The AI Basic Act represents a significant step forward in South Korea’s approach to AI governance, innovation and risk management. The act seeks to balance technological advancements with ethical considerations and public trust by introducing clear regulatory frameworks, transparency requirements and safety measures. With its structured compliance mechanisms, including risk assessment, human oversight and AI security measures, the act looks to ensure that AI systems operate in a safe, responsible and transparent manner.