Administrative Trends in Korea

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AI Basic Act: Strengthening the Foundation for AI Competitiveness

「The Act on Artificial Intelligence Development and Establishing a Foundation of Trust (AI Basic Act)」, initially proposed in July 2020, was finally enacted after four years, with its promulgation by the National Assembly in December 2024.

As the significance of artificial intelligence (AI) continues to grow, influencing both national economies and security, leading countries are striving to innovate in AI and expand their global influence. They are also developing regulations and systems that favor the utilization of AI within their borders. In this context, South Korea has recognized the need to improve its national AI competitiveness and create a secure foundation for AI usage, positioning itself as the second country in the world to adopt an AI Basic Act, following the European Union.

Key Provisions of the AI Basic Act:
1. Establishing a National AI Development and Trust-Building Framework
A basic plan to strengthen South Korea's AI competitiveness will be established and reviewed every three years. The plan includes the creation of institutions such as the Presidential Committee on AI, which will report directly to the President and oversee key policies related to AI development and the establishment of a trust foundation. Additionally, the AI Safety Institute (AISI) will be established as a specialized organization focused on protecting the public from AI-related risks.

2. Supporting AI Industry Growth though R&D, Data, and Infrastructure
To foster the AI industry, the Act outlines measures to expand data necessary for developing AI technologies, as well as the infrastructure required to support AI innovation. This includes the establishment of data centers and integrated complexes, fostering specialized talent to lead the AI era, and supporting small and medium-sized enterprises (SMEs) and startups to drive growth and innovation in the sector.

3. Creating a Safety-Trust Foundation for High-Impact AI and Generative AI
To address the potential risks and prevent the misuse of AI in areas that significantly impact human life, physical safety, and fundamental rights, the Act introduces the groundwork for user protection and risk management measures. These measures will be enforced by businesses operating in high-risk AI sectors.

The AI Basic Act is set to take full effect in January 2026, following a one-year transition period. Its passage is seen as a critical milestone for South Korea, as it aims to position itself among the world’s top three AI powers. The law is expected to spur large-scale investments from both the public and private sectors, strengthening the nation’s global standing in AI.

Looking ahead, the government plans to enact detailed subordinate statutes, including presidential decrees, notifications, and guidelines, through close consultation with stakeholders. These regulations will facilitate the rapid development and implementation of AI Industry policies.

· Source: Mninstry of Science and ICT
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