What is the South Korea AI Act?
South Korea’s Framework Act on the Development of Artificial Intelligence and Creation of a Trust Foundation, often referred to simply as the AI Framework Act or the AI Basic Act, is the country’s landmark law on artificial intelligence. It was passed by the National Assembly in December 2024, promulgated in January 2025, and will take effect in January 2026. The Act is unusual in that it combines both promotion of the AI industry and legally binding requirements to ensure safety, trust, and accountability in the use of artificial intelligence.
The law applies broadly to organizations developing or deploying AI systems in South Korea. Importantly, it also has extraterritorial reach, meaning it can apply to companies outside Korea if their AI activities impact Korean users or the domestic market. Responsibility for enforcement rests primarily with the Ministry of Science and ICT (MSIT), which has the authority to investigate companies, request information, and issue corrective orders. At the policy level, a new National AI Committee, chaired by the President, provides strategic oversight.
The Act interacts closely with existing South Korean legislation, particularly the Personal Information Protection Act (PIPA), which continues to govern AI systems that process personal data. It also builds on earlier technology laws, such as the Framework Act on Intelligent Informatization, by adding clear obligations for AI operators.
What are the requirements for the South Korea AI Act?
The Act distinguishes between different kinds of AI, particularly “high-impact AI”, systems deployed in sensitive areas that could affect people’s safety or rights, and “generative AI”, which produces text, images, video, or audio. Organizations must first determine whether their systems fall into one of these categories. For high-impact AI, operators are required to create and maintain risk management plans, provide explanations of how results are generated (including the main criteria and training data overview), put in place user protection and complaint-handling mechanisms, and ensure that there is clear human oversight of the system. They must also document all of these measures and, where possible, undergo prior verification or certification before deploying their technology.
Generative AI providers are required to maintain transparency. This includes notifying users in advance that a product or service is operated by AI, clearly labeling any outputs as AI-generated, and disclosing when synthetic media such as audio, images, or video are so realistic that they could be mistaken for reality.
Another important feature of the Act is its compute threshold. Where training AI models exceeds a specified computational standard (to be set by Presidential Decree), organizations must undertake additional safety measures: they must identify and mitigate risks throughout the AI lifecycle, establish a system to monitor and respond to safety incidents, and submit reports to MSIT documenting compliance with these obligations.
Foreign companies are also affected. Any AI business operator without a local office or address in Korea, but whose users or revenues cross set thresholds, will be required to designate a domestic agent and report this to MSIT.
In addition to these binding duties, the law encourages alignment with forthcoming national AI ethics principles and allows companies to set up private AI ethics committees. While voluntary, these steps are strongly recommended to build trust and demonstrate accountability.
Why should you be South Korea AI Act compliant?
Compliance with the South Korea AI Act is not only a matter of avoiding penalties, it is also a way to secure a foothold in one of Asia’s most advanced digital economies. Organizations that comply are more likely to be trusted by Korean regulators, customers, and business partners. Public agencies are expected to prioritize solutions that have completed human-rights impact assessments or received prior verification, giving compliant companies a distinct advantage in government and enterprise procurement. Transparent practices, such as labeling AI-generated outputs, also strengthen customer trust and help organizations stand out in a competitive market.
The risks of non-compliance are serious. The Ministry of Science and ICT has the power to conduct investigations, demand corrective measures, and impose administrative fines. Companies can face penalties of up to 30 million won (about USD 23,000) for failing to notify users, neglecting to appoint a domestic agent, or refusing to comply with corrective orders. Beyond financial penalties, organizations risk reputational damage, the loss of business opportunities, and possible suspension of services. Foreign providers, even without a Korean office, may also be exposed if their services reach Korean users.
In short, the Act is both a compliance requirement and an opportunity: it creates a structured environment for safe and responsible AI, while giving organizations that align early a competitive edge in Korea’s dynamic AI market.
How to achieve compliance?
Becoming compliant with South Korea’s Framework Act on the Development of Artificial Intelligence and Creation of a Trust Foundation starts with putting the right governance, safety, and transparency measures in place. Organizations need to classify their systems (high-impact, generative, or thresholded compute), implement risk management and user protection controls, ensure transparency through user notices and output labeling, and be prepared to submit reports or designate a domestic agent where required.
With the Centraleyes platform, these obligations can be streamlined into actionable steps:
- Automated assessments map your existing controls against AI Act obligations for high-impact and generative AI.
- Pre-built questionnaires capture evidence for risk management plans, transparency notices, explainability measures, and user protection policies.
- Risk registers and dashboards highlight safety gaps, track remediation, and monitor compliance with thresholds and reporting requirements.
- Automated reporting provides MSIT and stakeholders with audit-ready proof of compliance.
Most importantly, organizations can quickly see where they stand, close gaps faster, and demonstrate compliance with confidence, reducing manual effort and accelerating the journey to alignment with the South Korea AI Act.
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