Source: Korea JoongAng Daily

Korea JoongAng Daily reports on the widespread industry concern following the passage of the "Basic Act on the Artificial Intelligence Industry" in South Korea, scheduled to take effect in January 2026. The legislation establishes a comprehensive regulatory framework for AI, adopting a risk-based approach similar to the European Union's AI Act. It categorizes AI applications into different levels of risk, with high-risk systems—such as those used in healthcare, judicial processes, and public safety—facing strict transparency and accountability requirements. Companies must now implement internal safety audits and provide clear documentation of their algorithms' decision-making processes to avoid substantial fines.

While the South Korean government aims to position the country as a leader in AI governance and industrial growth, domestic tech companies have expressed anxiety about the speed of implementation. Industry leaders argue that many small and medium-sized enterprises (SMEs) are unprepared for the rigorous compliance costs associated with mandatory labeling and data protection audits. The act also establishes a National AI Strategy Committee under the Prime Minister's office to coordinate cross-ministerial efforts. As the enactment date approaches, the Ministry of Science and ICT is expected to release more detailed guidelines to help businesses navigate the transition and ensure that the law does not stifle the local innovation ecosystem.