South Korea Passes World’s Second "AI Basic Law" to Boost National Competitiveness

On December 26, 2024, the South Korean National Assembly passed the "Basic Act on the Development of Artificial Intelligence and the Establishment of Trust" (hereinafter referred to as the "Korean AI Basic Law"). This legislation makes South Korea the second jurisdiction in the world to enact a dedicated AI law, following the passage of the European Union's AI Act (EU AIA).

First proposed in July 2020, the Korean AI Basic Law underwent more than four years of deliberation and public consultation. After reaching an agreement between the ruling and opposition parties, the final bill consolidated proposals from 19 different committee members. Following reviews by the Ministry of Science and ICT (MSIT) and the Legislation and Judiciary Committee, the bill was passed during the plenary session of the 22nd National Assembly and is set to take effect in January 2026.

The framework of the Act is divided into five main sections: General Provisions, Promotion System, Technology R&D and Industry Cultivation, AI Ethics and Reliability Assurance, and Supplementary Provisions. Its legislative purpose is to establish a foundation of trust through AI regulation while simultaneously enhancing national AI competitiveness.

Legally classified as a special law regarding AI matters, the Act introduces significant changes to the governance structure:

• National AI Safety Committee: A new body responsible for deliberating AI policies and risk regulations.

• AI Policy Center: Overseen by the MSIT, this center will be responsible for formulating a Basic AI Plan every three years.

• AI Safety Institute: Tasked with AI technology standardization, risk definition, and assessment methodologies.

regarding technology R&D and industry cultivation, the Act establishes government policies to support research, including the promotion of AI clusters and AI data centers. It also provides specific resources and subsidies to foster AI talent within SMEs and startups.

In terms of AI ethics and reliability, the law primarily designates regulatory mechanisms for "high-risk AI." These include obligations for transparency and safety, alongside supporting measures such as safety verification and AI impact assessments. Penalties are established for violations of notification obligations.

Following cabinet approval and promulgation, there will be a one-year preparatory period before the law enters into force. The government plans to accelerate follow-up measures, including the establishment of committees and the revision of bylaws and guidelines to ensure effective implementation.

Yoo Sang-im, Minister of MSIT, stated that the passage of the AI Basic Law serves as the foundation for strengthening AI international competitiveness. By reducing uncertainty for enterprises and promoting large-scale investment through these policy packages, South Korea aims to leapfrog into position as a true AI powerhouse amidst fierce global competition.

On the same day, the South Korean National Assembly also passed the "Digital Inclusion Act." The core of this legislation mandates that companies provide accessible information and requires measures such as digital inclusion impact assessments for new government services and products during the digital policy-making process, aimed at preventing data discrimination.