South Korea Investigates Chinese AI Startup DeepSeek Over Data Collection Practices
Seoul, South Korea’s Data Protection Authority Plans Inquiry
Seoul, South Korea’s data protection authority plans to send an inquiry to DeepSeek, a Chinese artificial intelligence (AI) startup, amid growing concerns over the company’s data collection practices.
Growing Concerns Over Data Collection Practices
According to officials, the Personal Information Protection Commission (PIPC) under the interior ministry plans to send an official inquiry to DeepSeek’s headquarters in China, requesting detailed information on the startup’s policy on personal data collection.
Request for Information on Personal Data Collection
The PIPC also plans to ask how DeepSeek uses personal data for AI training purposes, reports Yonhap news agency.
Response to Rapid Rise in South Korean Users
The move comes in response to the rapid rise in South Korean users of DeepSeek and the increasing concerns over potential privacy risks.
Potential Privacy Risks
"Depending on the response, we will take further steps such as a fact-finding review or an investigation if necessary," the official said.
International Media Outlets Restrict Access to DeepSeek
Major international media outlets have reported that government institutions and companies worldwide are restricting access to DeepSeek over fears of data leaks and privacy violations.
DeepSeek’s Data Collection Policy
According to DeepSeek’s privacy policy, the company collects various forms of personal information, including users’ names, birth dates, email addresses, phone numbers and passwords for AI model training.
Types of Data Collected
The company also gathers keyboard input patterns, audio data, uploaded files and chat histories. The policy states that DeepSeek reserves the right to share such data with law enforcement and public agencies at its discretion.
Impact on South Korean Stocks
South Korean stocks ended lower on Friday after a weeklong holiday as tech shares sharply slid in the aftermath of a recent shock from the emergence of Chinese artificial intelligence (AI) startup DeepSeek. The Korean won was trading sharply lower against the U.S. dollar.
Foreign Investors Dumped Local Shares
Foreigners dumped 1.2 trillion won worth of local shares, while retail investors and institutions purchased a combined 1.16 trillion won.
Published On
Published On Feb 1, 2025 at 10:42 AM IST
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