South Korea accuses DeepSeek of transferring data to third party

South Korea has accused the China-based AI startup DeepSeek of sending its user data to ByteDance, TikTok’s parent company, sparking a data privacy investigation amid growing concerns over the startup’s practices.

South Korea has accused DeepSeek, a China-based artificial intelligence startup, of transferring the country’s user data to a third party, according to local media reports.

The nation’s data protection regulator, the Personal Information Protection Commission (PIPC), confirmed that DeepSeek sent user data to ByteDance, the parent company of the widely popular video-sharing app TikTok. The PIPC stated, "We confirmed DeepSeek communicated with ByteDance," as reported by Yonhap News Agency.

This accusation follows South Korea's recent suspension of new downloads of DeepSeek’s app, citing concerns over its data collection practices. The controversy has escalated, with several South Korean government ministries and agencies blocking internal access to the AI service due to fears over its data management protocols.

Just a month earlier, the PIPC formally requested clarification from DeepSeek regarding its data collection and handling methods. In response, the startup acknowledged gaps in its understanding of South Korean privacy laws and expressed its willingness to cooperate with authorities. To address concerns, DeepSeek also appointed a representative in South Korea.

DeepSeek, known for its innovative and cost-effective AI chatbot, has rapidly gained global attention. In fact, it has outpaced OpenAI’s ChatGPT in some regions, including the United States, despite having far fewer resources. Its sudden rise in popularity has shocked the AI industry, but the ongoing controversy over its data practices now casts a shadow over its future in South Korea and potentially other markets.

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