DeepSeek Suspends Service in Korea to Address Privacy Concerns

Key Takeaways

• DeepSeek Suspends Service: DeepSeek halts its AI chatbot app in Korea as of February 15, 2025, to improve compliance with South Korea’s Personal Information Protection Act (PIPA).
• Privacy Concerns: The Personal Information Protection Commission (PIPC) raised alarms about user data collection, storage practices, and transparency issues in DeepSeek’s privacy policy.
• Resolution in Progress: The company plans to resume its service after addressing the regulatory concerns.
• PIPC Action: The PIPC will closely monitor DeepSeek’s progress and is working to develop a checklist for foreign AI services operating in Korea.

Deep Dive

DeepSeek, the China-based AI chatbot service, is currently navigating a tricky regulatory landscape as privacy concerns grow across the globe. After being hit with privacy scrutiny in South Korea and facing an enforcement action in Italy over data protection practices, DeepSeek is working to address key concerns to avoid further disruptions to its operations.

In South Korea, the Personal Information Protection Commission (PIPC) moved to temporarily suspend DeepSeek’s chatbot service as of February 15, 2025, citing issues related to data protection under the Personal Information Protection Act (PIPA). The suspension follows concerns about data collection, transparency, and whether user data was being stored outside of Korea. In response, DeepSeek has pledged to update its policies and practices to meet the regulatory requirements and plans to resume its service once the necessary adjustments are made.

The company’s troubles are not confined to Korea, however. Earlier this year, Italy’s Data Protection Authority, the Garante, took action to block DeepSeek’s processing of Italian user data, citing non-compliance with the General Data Protection Regulation (GDPR). This decision is part of a growing trend in Europe where regulators are taking AI developers to task for their handling of user data. For more details on Italy’s actions, refer to our previous coverage here.

AI’s Regulatory Crossroads
As DeepSeek grapples with these ongoing challenges, the larger story is how AI regulation is tightening worldwide. With the EU AI Act now in effect, companies like DeepSeek face not only stricter data protection laws but also requirements for transparency and AI literacy among employees. This move by the EU is just one example of how the global regulatory environment is evolving as governments seek to balance innovation with user privacy.

DeepSeek’s story is far from over. With its service suspended in both South Korea and Italy, the company faces mounting pressure to overhaul its data practices. As it works with regulators to bring its service in line with local laws, DeepSeek must also consider how to navigate the broader landscape of AI regulation. The company’s next steps will have major implications—not just for its own future, but also for other AI companies looking to operate in an increasingly privacy-conscious world.

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