South Korea Bans DeepSeek AI Chatbot Over Privacy Concerns, Following Italy’s Lead

Image Credit: Daniel Bernard | Splash

China’s DeepSeek artificial intelligence chatbot has gained massive traction worldwide since its launch late last month. Within just a week, the chatbot soared to the top of app store rankings in South Korea, accumulating over a million weekly users. However, this meteoric rise has not gone unnoticed, as multiple governments have raised concerns about data privacy, national security, and regulatory compliance.

[Read More: Italy Bans DeepSeek AI: First Nation to Block China’s AI Over Privacy Issues]

South Korea’s Decision to Suspend DeepSeek

In response to these concerns, South Korea’s Personal Information Protection Commission (PIPC) announced the suspension of new downloads of DeepSeek from Apple’s App Store and Google Play. The suspension took effect on Saturday evening, following internal government directives prohibiting public sector employees from installing the AI chatbot on work devices.

South Korea’s acting president, Choi Sang-mok, described DeepSeek’s emergence as a "shock" with potential consequences that extend beyond AI into various national industries. While new downloads are restricted, existing users can continue to access the chatbot on their devices or through DeepSeek’s official website.

[Read More: What You Need to Know About DeepSeek AI’s License and Its Restrictions]

Growing Global Restrictions on DeepSeek

South Korea is not alone in its cautionary stance against DeepSeek. Several nations have taken action against the AI chatbot over similar concerns:

  • Taiwan and Australia: Both countries have prohibited DeepSeek from government devices. Australia has explicitly stated that the decision was based on an "unacceptable risk" to national security rather than the app’s Chinese origins.

  • Italy: The country’s data protection regulator, which briefly restricted OpenAI’s ChatGPT in 2023 over privacy concerns, has now imposed a similar temporary ban on DeepSeek until the company revises its privacy policies to meet European standards.

  • France and Ireland: Data protection authorities in these countries are currently investigating DeepSeek’s data storage and privacy practices. Specifically, they seek clarity on whether user data is stored on Chinese servers, as outlined in DeepSeek’s privacy policy.

  • United States: Lawmakers have proposed a bill to ban DeepSeek from federal devices due to potential surveillance threats. At the state level, Texas, Virginia, and New York have already implemented similar prohibitions for government employees.

[Read More: DeepSeek AI Banned in Multiple Countries Over Data Privacy & Security Concerns]

DeepSeek’s Technological Edge and Industry Implications

Despite mounting regulatory concerns, DeepSeek’s AI model has impressed experts with its efficiency and cost-effectiveness. The chatbot’s large language model (LLM) reportedly demonstrates reasoning capabilities comparable to OpenAI’s GPT-4 while requiring significantly fewer resources to train and operate.

This has triggered industry-wide discussions about AI development costs. Many analysts question the sustainability of the massive investments made by US firms and their reliance on costly infrastructure. If DeepSeek’s model can achieve comparable performance at a fraction of the cost, it raises concerns about whether Western AI firms are overspending on resources while Chinese AI companies optimize efficiency.

[Read More: DeepSeek’s 10x AI Efficiency: What’s the Real Story?]

The Privacy Debate: Data Security vs. Technological Advancement

A key argument against DeepSeek revolves around data security. Critics highlight its privacy policy, which permits data collection, including email addresses, birth dates, and input prompts. Additionally, concerns persist regarding whether this data is stored on Chinese servers and, if so, how it is used. Governments worry about potential surveillance risks, similar to those raised against other Chinese tech companies in recent years.

However, supporters argue that DeepSeek represents healthy competition in the AI space, challenging US-led dominance in the sector. They assert that regulatory scrutiny should apply uniformly to all AI companies rather than disproportionately targeting Chinese firms. Furthermore, DeepSeek’s ability to deliver cost-efficient AI solutions could accelerate global AI development, benefiting businesses and consumers alike.

[Read More: Why Did China Ban Western AI Chatbots? The Rise of Its Own AI Models]

Will DeepSeek Adapt to Global Regulations?

DeepSeek’s regulatory challenges suggest that AI firms must prioritize transparency and compliance with international privacy laws if they wish to expand globally. The company has not yet provided a detailed response to South Korea’s ban, but it will likely need to revise its data policies to regain access to key markets.

For now, DeepSeek remains operational for existing users in South Korea and other regions, but its future hinges on how it addresses regulatory concerns. As the global AI race intensifies, DeepSeek’s trajectory will serve as a case study in balancing technological advancement with ethical data governance.

[Read More: Rule of AI vs. Rule by AI: Will AI Serve Humanity or Enable State Control?]

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Source: BBC

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