South Korea has suspended new downloads of the Chinese artificial intelligence (AI) chatbot DeepSeek following concerns over data privacy. The Personal Information Protection Commission (PIPC), the country’s data protection authority, announced that DeepSeek had failed to fully comply with South Korean privacy laws, leading to its removal from the local versions of Apple’s App Store and Google Play on Saturday evening.
Although the app is no longer available for new users, those who previously downloaded it can continue using it. Additionally, the chatbot remains accessible via its web-based platform. The PIPC has stated that DeepSeek’s services will be restored once necessary adjustments are made to ensure compliance with the country’s data protection regulations.
DeepSeek’s Rapid Rise
DeepSeek, a Chinese AI startup, made headlines in recent weeks after its chatbot surged in popularity worldwide. In South Korea, it quickly became one of the most downloaded apps, amassing over a million weekly users. However, this rapid growth also attracted regulatory scrutiny, with multiple governments imposing restrictions on the AI model over concerns related to privacy and national security.
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Italy’s data protection authority, the Garante, recently blocked DeepSeek’s chatbot in the country, citing similar privacy concerns. Other nations, including Australia and Taiwan, have banned the chatbot on government devices. Meanwhile, lawmakers in the United States have proposed a bill to prevent federal employees from using the app, with states such as Texas, Virginia, and New York already implementing similar restrictions.
Government Response to Privacy Violations
The South Korean government’s move follows an internal review of DeepSeek’s data collection practices. The PIPC discovered that the AI company lacked transparency regarding third-party data transfers and may have collected excessive personal information from users. The regulator advised current users to be cautious and avoid entering sensitive data into the chatbot until privacy concerns are resolved.
Several South Korean government agencies had already taken precautionary steps before the formal suspension. Many departments prohibited employees from downloading DeepSeek onto work devices, fearing potential data breaches and unauthorized information collection. South Korea’s acting president, Choi Sang-mok, described the chatbot’s emergence as a “shock” that could have wide-reaching implications for industries beyond AI.
DeepSeek’s Response and China’s Position
In response to regulatory concerns, DeepSeek recently appointed legal representatives in South Korea and acknowledged shortcomings in its data protection measures. The company has agreed to collaborate with authorities to address the issues raised. However, it has yet to provide a detailed statement on the matter or respond to media inquiries.
China’s government has also weighed in on the situation. When questioned about the South Korean government’s decision to block the app, a Chinese foreign ministry spokesperson stated that Beijing takes data privacy seriously and ensures compliance with legal frameworks. The spokesperson further emphasized that China does not require companies or individuals to collect or store data in violation of laws.
DeepSeek’s Disruptive Impact on AI Industry
Beyond regulatory scrutiny, DeepSeek’s emergence has sent shockwaves through the global AI industry. The startup claims to have developed its large language model (LLM) at a fraction of the cost required by U.S. tech giants such as OpenAI and Google. A research paper released by DeepSeek’s team suggested that they spent less than $6 million on computing power to train their AI model—a stark contrast to the billions invested by Silicon Valley firms.
This revelation has fueled concerns about the sustainability of existing AI business models. Investors reacted strongly to DeepSeek’s potential disruption, causing a significant shake-up in financial markets. Last month, following DeepSeek’s announcement, the collective market value of the so-called “Magnificent Seven” tech firms—including Apple, Microsoft, and Google—dropped by approximately $1 trillion in a single day.
While some industry experts remain skeptical of DeepSeek’s claims, speculating that the startup may have had access to more advanced chips and undisclosed funding, the chatbot’s success has undeniably challenged the AI landscape.
Read More: DeepSeek faces global bans over security and privacy concerns …
For now, South Korea’s suspension of DeepSeek downloads marks a significant hurdle for the Chinese AI company. The PIPC has stated that the review process may take a considerable amount of time, indicating that DeepSeek’s return to app stores is unlikely to happen soon.