Under the regulations as part of the so-called "AI Basic Act," the country's first legal framework for artificial intelligence, companies developing or operating AI services must notify users when generative AI is used and label AI-generated content.
Those whose systems could significantly affect people's rights or safety must also assess potential risks and impacts and put internal governance and risk management systems in place.
To avoid discouraging innovation under the stricter rules, the government, however, is also rolling out incentives to help foster the domestic AI industry. Verified AI products and services will receive preferential treatment in public procurement as well as bonus points in bid evaluations.
Other measures include funding for startups, job training, broader access to public data for AI development, and subsidies aimed at improving access to AI services for older adults, people with disabilities, job seekers and other underserved groups.
Major South Korean tech companies including Kakao, KT, LG Uplus, Naver, SK Telecom, as well as AI startup Upstage have already strengthened their AI governance and expanded labeling of AI-generated content to comply with the new law.
But some industry workers say uncertainty still remains over how much generative AI must be used before content-labeling requirements apply, and whether the same standards apply when AI-generated content is edited or reviewed by humans.
They also say that the lack of clear definitions for AI with high potential impact could increase costs for assessment and delay product launches, particularly for startups with fewer resources than large tech companies.
These debates come as major economies take different approaches to AI-related regulation. The U.S. and Japan have focused on promoting innovation, while the European Union has adopted a risk-based framework that imposes different obligations depending on the potential risks posed by AI.
A one-year grace period will be given to businesses before full enforcement, allowing authorities to gather industry feedback and establish more detailed guidelines.
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