South Korea

South Korea Suspends Downloads of DeepSeek Over Data Privacy Concerns

South Korea’s Personal Information Protection Commission (PIPC) has temporarily halted new downloads of DeepSeek, a Chinese-developed chatbot app, while it investigates how the company handles user data. The suspension, which began on February 15, comes amid growing concerns over DeepSeek’s data privacy practices.

According to the PIPC’s statement on February 17, DeepSeek has agreed to suspend new downloads and collaborate with the agency to improve privacy protections. However, existing users can still access the app’s services. The PIPC has urged caution for current users until the investigation’s results are released, as it works to ensure DeepSeek complies with South Korea’s stringent data protection laws.

The investigation centers around the chatbot’s data collection and processing practices. Launched on January 27, DeepSeek’s AI-driven chatbot, which mirrors OpenAI’s ChatGPT, sparked significant concerns over potential national security risks. Privacy experts and regulators raised alarms, which were amplified by market reactions, as both U.S. stock and cryptocurrency markets saw drops on the same day as the app’s debut.

The PIPC began its probe soon after DeepSeek’s launch, requesting detailed information on the company’s data practices. Its preliminary findings identified issues in communication and data handling, particularly in its interactions with third-party service providers. These concerns were echoed in both domestic and international media.

As part of its investigation, the PIPC will conduct on-site inspections to assess DeepSeek’s compliance with South Korea’s data protection regulations. The agency also plans to issue recommendations for improvements and offer guidance to other AI firms to avoid similar issues.

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With previous experience from inspecting six AI companies last year, the PIPC expects this investigation to proceed more swiftly, helping to ensure that the app meets the country’s privacy standards before being allowed back on local app stores.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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