✔️Expansion of AI Platforms and Emerging Legal Issues

With the rapid growth of generative AI, chatbots, and automation platforms, companies and developers are pursuing both innovation and efficiency.

However, as AI learns and utilizes massive datasets, various legal and ethical issues — such as copyright infringement, personal data leakage, and algorithmic bias — have emerged.

Starting January 2026, the AI Framework Act, a comprehensive law on artificial intelligence, will take effect in Korea, significantly strengthening the legal responsibilities and compliance obligations of AI businesses.

✔️The AI Framework Act: Balancing Industry Promotion with Trust and Accountability

This new law requires mandatory labeling of AI-generated content and strengthens regulations on deepfake and synthetic media. It also imposes separate safety and ethical assessments for high-impact AI systems.

In addition, AI-related service providers must implement regular performance evaluations and risk management systems, while the government will simultaneously support AI R&D, talent development, and ecosystem growth to promote sustainable industry development.

Failure to identify and comply with newly imposed obligations — such as classification of AI systems, pre-deployment risk assessments, and compliance verification — could result in administrative sanctions or fines. Therefore, obtaining expert legal advice on these complex issues is essential.

✔️Personal Data Protection: Balancing Data Utilization and Individual Rights

As AI increasingly relies on data, Korea’s Personal Information Protection Act is becoming stricter. AI service providers must obtain explicit consent from data subjects for data collection and use, and ensure that data is minimized, pseudonymized, and securely managed.

New rights have also been introduced — such as the right to explanation and objection regarding automated decision-making, the right to data portability, and the right to deletion of deepfake or synthetic content — thereby strengthening user protections.

To comply, AI companies must conduct Personal Information Impact Assessments (PIA) and establish internal control systems to ensure accountability and build user trust.

✔️Copyright: New Challenges in AI Training and Generated Works

AI systems that train on text, images, or music and generate new content raise significant copyright concerns.

If AI uses copyrighted material without authorization, or if its outputs substantially resemble existing works, copyright infringement disputes may arise — and such cases are already increasing worldwide.

AI developers and service providers must therefore carefully verify the copyright status of training data, and review ownership and derivative work issues regarding generated outputs in advance.

As ongoing legal debates seek to balance copyright protection and technological innovation, businesses should monitor these developments and proactively adapt their compliance measures.

✔️Compliance Strategies for AI Companies

• Conduct Personal Information Impact Assessments (PIA) and preliminary legal reviews

• Establish clear user notification and consent procedures

• Comply with data minimization and pseudonymization principles

• Prevent copyright and publicity rights violations

• Implement controls for deepfake and synthetic content

✔️Decent Law Firm Has the Answers

AI business offers tremendous innovation opportunities — but also involves complex legal risks under the AI Framework Act, Personal Information Protection Act, and Copyright Act.

The key to safe and sustainable AI operations lies in preemptive legal review and compliance systems guided by professional legal counsel.

Decent Law Firm combines extensive experience in the AI and data industry with practical legal expertise to help businesses:

• Draft and review AI-related contracts and policies
• Establish internal governance frameworks
• Build compliance systems tailored to their operations

If you have any questions regarding corporate advisory services, please feel free to contact us.