Synopsis
South Korea's data protection authority plans to investigate the Chinese AI startup DeepSeek over rising concerns regarding its data collection practices. The inquiry will also address how DeepSeek utilizes personal data for AI training, following significant user growth and privacy risk apprehensions.Key Takeaways
- South Korea initiates inquiry into DeepSeek.
- Concerns over data collection practices.
- PIPC seeks details on personal data usage.
- DeepSeek's privacy policy includes extensive data collection.
- Impact on South Korean stock market observed.
Seoul, Feb 1 (NationPress) South Korea's data protection authority is set to launch an inquiry into DeepSeek, a Chinese artificial intelligence (AI) startup, in light of escalating concerns regarding the company's data collection methods, as confirmed by officials.
The Personal Information Protection Commission (PIPC), operating under the interior ministry, intends to reach out to DeepSeek's headquarters in China, seeking comprehensive details about the startup's practices pertaining to personal data collection.
Additionally, the PIPC will inquire about how DeepSeek utilizes personal data for AI training, according to reports from Yonhap news agency.
An official from the commission indicated that this action is a reaction to the swift increase in South Korean users of DeepSeek and the rising concerns regarding potential privacy threats.
"Depending on the response, we will implement further actions such as a fact-finding review or conduct an investigation if deemed necessary," the official stated.
Numerous leading international media outlets have reported that various government entities and businesses globally are limiting access to DeepSeek due to worries about data breaches and privacy infringements.
As per DeepSeek's privacy policy, the startup collects an array of personal information, including users' names, birth dates, email addresses, phone numbers, and passwords for the purpose of AI model training.
The company also accumulates keyboard input patterns, audio recordings, uploaded files, and chat histories. The policy specifies that DeepSeek reserves the right to share this data with law enforcement and public organizations at its discretion.
On Friday, South Korean stocks closed lower following a weeklong holiday as technology shares experienced a significant decline after the emergence of the Chinese AI startup DeepSeek. The Korean won was trading notably lower against the U.S. dollar.
Foreign investors offloaded local shares worth 1.2 trillion won, while retail and institutional investors collectively purchased 1.16 trillion won.
