The rise of AI regulation

South Korea has passed a comprehensive law to regulate artificial intelligence, effective immediately, in a move designed to curb misinformation, AI-generated falsifications, and high-risk applications of the technology. The law, called the “Basic Artificial Intelligence Act”, establishes a framework for accountability, giving the government the power to impose fines of up to 30 million won on companies whose AI systems pose significant risks to individuals or society.

The legislation focuses on AI applications in critical areas such as hiring, lending, and medical advice, sectors where algorithmic decisions can have profound consequences on people’s lives. Companies are now required to inform users whenever AI is in use and to watermark AI-generated content to ensure transparency. In addition, global tech firms operating in South Korea, including OpenAI and Google, must appoint a local representative to liaise with authorities. The law also includes a one-year grace period before penalties are enforced and establishes government review cycles every three years to provide continued support for the domestic AI industry.

A blobal trend in AI regulation

Both laws reflect a growing recognition that AI is no longer an abstract technology, it is deeply integrated into daily life, shaping employment, healthcare, finance, and public discourse. By establishing clear responsibilities for companies, these regulatory efforts aim to prevent harmful outcomes before they occur while supporting sustainable AI development.

As AI adoption expands at an unprecedented pace, the South Korean law represents a critical step toward a more accountable and transparent AI ecosystem. It signals that governments are ready to move beyond reactive responses to AI-related problems, taking proactive measures to protect society. Analysts suggest that such frameworks could encourage global cooperation, harmonizing standards for AI safety, transparency, and ethical use, while ensuring that innovation does not come at the expense of human rights.

For South Korea and potentially the wider world, this law demonstrates that regulation and innovation can coexist, offering a blueprint for how governments can harness AI safely while preserving public trust.