South Korea has formally enacted the “Basic Act on the Development of Artificial Intelligence and the Establishment of a Foundation for Trustworthiness,” or AI Basic Act in short, on 22 January. As such, the East Asia nation becomes the first country in the world to adopt comprehensive government-level legislation covering AI development and usage.
AI Basic Act Enacted
For starters, this landmark act requires companies and AI developers to take responsibility for risks of AI models, while granting authorities power to investigate violations and impose penalties. This is in contrast of American-made AI models encouraged to operate fast and loose in hopes to encourage innovation, but it came with some nasty side effects, including AI psychosis, misinformation, deepfakes, and IP theft (which is still a contentious topic among creatives), to name a few. For example, Grok was recently banned in Malaysia for potentially allowing AI-generated CSAMs.
The regulatory framework also introduces a new “high-risk AI” classification covering systems used in life-altering or mission-critical situations, including employment process, loan reviews, medical advice, or anything that involves critical infrastructure. Operators of high-risk AI services must clearly inform users that AI is being used, and for generated content, watermarks must be applied to indicate its origin. South Korea’s science ministry noted that watermarks are “the minimum safeguard” to prevent misuse, such as deepfakes.
Similar to Malaysia’s social media laws, AI Basic Act requires globally-operated AI service providers that meets revenue, domestic sales, or user threshold criteria to appoint a local representative to support regulatory oversight, currently applicable Google and OpenAI. Violations (i.e. lack of watermarks in AI-generated content) may result in fines of up to 30 million won (~RM82,500), with a one-year grace period before full enforcement.
Pokdepinion: Hopefully lawmakers speed things up, as some companies clearly disregard laws to gain any bit of advantage.
![[UPDATED: Statements] Forza Horizon 6 Dev Drops Multi-Millennial Ban Hammer To Cheater Before The Game Has Even Released - 58](https://cdn.pokde.net/wp-content/uploads/2026/05/12022254/fh6leakpermabancover-420x280.jpg "[UPDATED: Statements] Forza Horizon 6 Dev Drops Multi-Millennial Ban Hammer To Cheater Before The Game Has Even Released - 59")
