South Korea accuses Chinese AI startup DeepSeek of transferring personal data without consent

The DeepSeek logo is seen on January 29, 2025 [Dado Ruvic/Reuters]
The DeepSeek logo is seen on January 29, 2025 [Dado Ruvic/Reuters]

South Korea’s data protection watchdog accuses Chinese AI startup of transferring personal data without consent

The Personal Information Protection Commission (PIPC), South Korea’s data protection watchdog, has accused DeepSeek, a Chinese AI startup, of transferring personal data without users’ consent. The commission revealed that DeepSeek had been sending user prompts, device information, and network information to a cloud service in Beijing called Volcano Engine.

DeepSeek admits failure to comply with Korea’s data protection laws

DeepSeek has admitted to not adequately considering Korea’s data protection laws and has voluntarily suspended new downloads. The company acknowledges its failure to comply with regulations and is taking steps to rectify the situation.

China’s Ministry of Foreign Affairs emphasizes commitment to data privacy and security

In response to the allegations, China’s Ministry of Foreign Affairs has emphasized its commitment to data privacy and security. The ministry highlights the importance of complying with relevant laws and regulations to protect users’ personal information.

DeepSeek’s R1 model challenges US tech giants in AI

DeepSeek’s R1 model, developed with a budget of less than $6 million, has challenged the dominance of US tech giants in the field of AI. The emergence of DeepSeek was hailed as “AI’s Sputnik moment” by Marc Andreessen, a prominent tech venture capitalist in Silicon Valley.

Scrutiny of US tech giants’ market valuations

DeepSeek’s entry into the AI market has prompted scrutiny of US tech giants’ market valuations. The company’s success has raised questions about the current landscape of AI technology and the potential for new players to disrupt the industry.

DeepSeek voluntarily suspends new downloads

In response to the allegations, DeepSeek has voluntarily suspended new downloads. The company recognizes the importance of user consent and is taking steps to address the concerns raised by the Personal Information Protection Commission.

Conclusion

The accusation against DeepSeek for transferring personal data without consent highlights the importance of data protection and user privacy. The incident serves as a reminder for AI startups to carefully consider and comply with data protection laws in the countries they operate in.

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