South Korea suspends Chinese AI app DeepSeek after discovering it secretly transferred the data of 1.5 million users to companies in China and the United States without proper consent.
At a Glance
- South Korea’s privacy watchdog found DeepSeek AI transferred user data overseas without consent
- The Chinese-made app failed to provide opt-out options and didn’t verify users’ ages
- DeepSeek has been ordered to halt downloads in South Korea pending investigation
- U.S. officials are also investigating the app for censorship and ties to the Chinese Communist Party
- China accused South Korea of “politicizing” AI technology under American influence
Privacy Breach Leads to Suspension
South Korea’s Personal Information Protection Commission (PIPC) announced Thursday that DeepSeek, a Chinese artificial intelligence application launched globally in early 2025, illegally transferred user data to companies in China and the United States. The investigation revealed that within just one month, DeepSeek had transferred the personal information of up to 1.5 million South Korean users without obtaining proper consent. The privacy watchdog noted multiple violations, including failure to provide users with an opt-out option and lack of age verification to protect children under 14 years old.
Following these discoveries, the PIPC requested DeepSeek to immediately suspend its distribution in South Korea pending further investigation. The company has complied with this request while the commission evaluates whether the app poses additional security risks. DeepSeek gained rapid popularity after its launch due to its affordability compared to competitors like ChatGPT, but now faces serious regulatory challenges in the South Korean market.
Ongoing Investigation and Compliance Requirements
The PIPC has established strict deadlines for DeepSeek to address its privacy violations. The company has been given ten days to accept the commission’s compliance recommendations and 60 days to implement the required changes. However, no timeline has been provided for when the app might be allowed to resume operations in South Korea. The regulatory body indicated it is proceeding cautiously with its investigation.
DeepSeek has acknowledged violating South Korea’s data privacy regulations but has not provided details on how it plans to address these issues. The PIPC’s investigation also uncovered that the app was sending user data to ByteDance, the Chinese company behind TikTok, raising additional concerns about potential data misuse by Chinese entities. South Korean authorities are particularly concerned about the lack of transparency regarding how user data is being handled.
International Scrutiny and Political Tensions
The suspension of DeepSeek in South Korea has triggered diplomatic tensions with China. The Chinese government criticized South Korea’s actions, accusing them of “politicizing” AI technology and suggesting the decision was made under pressure from the United States. Meanwhile, American authorities have launched their own investigations into DeepSeek’s operations. The U.S. House Select Committee on the Chinese Communist Party discovered evidence that the app’s responses were edited to align with Chinese Communist ideology.
The U.S. House Energy and Commerce Committee is also investigating DeepSeek for potential privacy violations and ties to the Chinese government. This multi-national scrutiny highlights growing concerns about Chinese technology companies’ data practices and their relationships with Beijing’s authorities. For American and South Korean users, these investigations raise important questions about the security of their personal information when using foreign-developed AI applications.
