Seoul: South Korea on Thursday formally enacted the world's first comprehensive law governing the safe use of artificial intelligence (AI) models. According to Yonhap News, the Basic Act on the Development of Artificial Intelligence and the Establishment of a Foundation for Trustworthiness now mandates that companies and AI developers take greater responsibility for addressing deepfake content and AI-generated misinformation.

According to Anadolu Agency, Companies utilizing high-risk AI models, which are systems capable of generating content that affects daily life or people's safety, are required to inform users that their services are AI-based and must ensure appropriate safety measures are in place. These applications include hiring processes, loan assessments, and medical advice. Additionally, content generated by AI models must carry watermarks to signify its AI-generated nature. A Science Ministry official noted, "Applying watermarks to AI-generated content is the minimum safeguard to prevent side effects from the abuse of AI technology, such as deepfake content."

Furthermore, the law stipulates that international companies operating in South Korea designate a local representative if they have global annual revenue of 1 trillion won ($680 million) or more, domestic sales of at least 10 billion won ($6.8 million), or 1 million or more daily users in the country. OpenAI and Google currently meet these criteria. Violations of the act can result in fines of up to 30 million won ($20,418). However, the government plans to implement a one-year grace period before imposing penalties to help the private sector adapt to the new regulations.

In addition, the act requires the science minister to present a policy blueprint every three years as part of efforts to promote the AI industry, ensuring that South Korea remains at the forefront of AI development and safety.