The Impact of Chinese Artificial Intelligence DeepSeek on South Korea's Data Security: Between Regulation and Geopolitics

In recent years, the advancement of artificial intelligence (AI) has transformed multiple sectors, from medicine to the financial industry. However, the use of these technologies has also generated growing concerns about the security of personal data and privacy. 

A recent case that has tested the resilience of data protection policies is the incident involving DeepSeek, a Chinese-origin AI, whose unauthorized transfer of South Korean user data to Beijing has triggered a series of political and regulatory responses in South Korea.

In April 2025, the South Korean government temporarily suspended access to the DeepSeek application due to suspicions that the personal data of South Korean users was being sent to a company in Beijing without the explicit consent of the individuals concerned. Although the DeepSeek AI was downloaded and used by millions of users, South Korean authorities quickly detected a series of irregularities that led to a thorough investigation. 

Although South Korea later lifted the suspension after a series of security measures and platform adjustments by DeepSeek, the incident highlighted the tensions between data protection and the geopolitical context, especially when it comes to emerging technologies from countries with less strict privacy regimes.

This article from ITD Consulting examines the DeepSeek case and its implications for AI regulation, personal data protection, and the geopolitical relationship between South Korea and China. It also discusses the measures governments must implement to safeguard users’ rights in the face of the growing influence of foreign technologies such as DeepSeek.

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The Context of the Suspension and the Controversy

DeepSeek is one of many AI-based platforms that have managed to capture the attention of users worldwide, especially in Asia. This DeepSeek application uses advanced algorithms to process large volumes of data, leveraging machine learning techniques to predict behaviors and consumption patterns. 

The Chinese AI DeepSeek, which initially offered innovative services, was quickly adopted by South Korean users across various industries, including technology and entertainment. However, in April 2025, South Korean authorities began investigating the privacy practices of the DeepSeek application after receiving reports about the transfer of personal data to Beijing without user consent. 

As a result of the investigations, access to the DeepSeek app was suspended across the country, causing major alarm in the tech and political spheres. This incident with DeepSeek is not only related to the technology itself but also part of a broader debate on data control in a world where digital applications and platforms transcend borders. 

As technological tools develop and proliferate globally, countries face the challenge of maintaining control over their citizens’ personal data. The temporary suspension of DeepSeek clearly reflects the tension between technological globalization and the need to protect individual privacy.

Moreover, the DeepSeek situation is not an isolated case. As more technology companies from China and other countries expand worldwide, the dilemma of how to manage the security of personal data becomes more complex. 

This DeepSeek case shows how even the smallest security gaps can have a profound impact on public trust toward foreign platforms. Globally, there are growing fears that companies from countries with authoritarian regimes may use technologies to gain undue advantages or even for mass surveillance purposes.

Unauthorized Data Transfer

At the core of the controversy is the unauthorized transfer of data. The DeepSeek application, according to information provided by South Korean authorities, was sending personal information to a company in Beijing, in clear violation of the country's data protection laws. 

In simple terms, South Korean users downloaded and used the DeepSeek application without knowing that their data would be shared with entities outside South Korea, thus compromising both their privacy and their digital rights. This type of situation highlights a fundamental problem: the lack of transparency in AI systems like DeepSeek. 

Artificial intelligence applications such as DeepSeek do not always clearly explain how user data is managed or what kind of information is being collected. In this particular case, the data transferred to the company in Beijing may have included sensitive information such as browsing history, online behavior patterns, and other private data.

Moreover, the unauthorized use of such data by Chinese companies like DeepSeek raises further concerns due to the political and social context in China—a country with a highly developed state surveillance system. While data privacy laws in China have evolved in recent years, there is still a lack of guarantees regarding the protection of non-Chinese citizens' data. 

The concern is that such data could be used not only for commercial purposes by DeepSeek, but also for objectives that could compromise the national security of other countries. The privacy violation resulting from this data transfer not only affected South Korean users’ trust in the application but also sparked a broader debate about the responsibilities of tech companies in protecting privacy. 

Companies like DeepSeek, operating globally, must be transparent and follow international regulations to ensure that their practices do not infringe upon users’ rights. The DeepSeek situation underscores that citizens around the world should be aware that control over their personal information may be in the hands of companies and governments from other countries. This raises the need for greater global accountability from tech platforms.

The South Korean Government’s Response

One of the most immediate responses from the South Korean government was the suspension of the DeepSeek application. The measure was taken as part of an effort to prevent more sensitive data from being compromised by DeepSeek while an investigation was underway. This decision against DeepSeek highlights the seriousness with which the country addresses the protection of its citizens’ personal information—a core value in today’s digital society. 

The South Korean government, known for being one of the most advanced in terms of data protection policies, had already implemented strict regulations in this area, inspired by the European Union's General Data Protection Regulation (GDPR). However, the speed at which AI applications like DeepSeek can evolve and adapt poses a considerable challenge for national authorities.

After the suspension, South Korean authorities demanded a full review of DeepSeek’s security protocols. As the investigation progressed, the company behind the Chinese AI DeepSeek implemented several security updates and adopted new privacy policies that included explicit user consent for data sharing and strict geographical limits on data storage and processing.

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The South Korean government, after evaluating the changes, ultimately lifted the suspension on DeepSeek. However, this process revealed the urgent need for stricter regulations at the global level. 

Although the measures adopted by DeepSeek were adequate to temporarily restore trust, the situation made it clear that not only companies, but also governments, must act swiftly and decisively to regulate the use of technologies that directly impact citizens' privacy.

In the future, it is likely that more countries will adopt similar measures, establishing their own regulatory frameworks that require foreign tech companies to undergo rigorous oversight regarding their data handling practices.

The Geopolitical Dimension: China, South Korea, and Data Protection

Beyond the technical issue, the DeepSeek case also highlights a geopolitical dimension that cannot be ignored. The relationship between South Korea and China has historically been complex, especially with regard to cybersecurity. South Korea, one of the most advanced countries in terms of digital infrastructure, has faced threats from China on multiple occasions, both in terms of cybersecurity and political influence.

In this case, the transfer of data to a company in Beijing by DeepSeek raises questions about the control the Chinese government could exert over the collected information. Given the context of digital sovereignty, the unauthorized access to South Korean citizens' data by a Chinese company reinforces concerns about national security. 

In countries like South Korea, data protection is not only related to individual privacy but also to the nation’s security in the face of potential misuse of sensitive information. The DeepSeek incident has highlighted the growing geopolitical challenge posed by the adoption of technologies originating from countries with more lenient privacy policies. 

In such countries, like China, the government exercises significant control over tech companies such as DeepSeek, putting the autonomy of citizens from other nations at risk. The implications of data transfers of this kind in the case of DeepSeek are not limited to individual protection, but can extend to areas such as political security, economic competitiveness, and social well-being.

These types of incidents can lead to further distancing between countries in terms of digital and cybersecurity cooperation, which in turn affects the adoption of foreign technologies. In this sense, nations must carefully consider the geopolitical implications when adopting technologies from countries with lax privacy regimes, such as the case of China.

The Importance of AI Regulation and Personal Data Protection

The DeepSeek incident highlights an unavoidable reality: the urgent need to regulate artificial intelligence technologies. As more tech companies enter the global market, data privacy regulations must evolve to address the inherent risks associated with the collection and use of personal information.

In countries of the European Union, as in the case of the GDPR, regulation is strict and imposes severe penalties on companies that do not comply with data protection laws. This approach could serve as a model for other nations seeking to balance technological innovation with the protection of citizens’ fundamental rights. 

In fact, the GDPR is one of the strictest regulatory frameworks worldwide, and many countries are following its example to establish similar policies that protect consumers and ensure transparency in the use of their data. However, adopting similar legislation in other regions presents challenges. 

Many developing or emerging economies lack the infrastructure needed to implement policies as complex and detailed as those required by the GDPR. This is where multilateral agreements between countries could play a key role, promoting international cooperation to create privacy standards that are globally effective.

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The DeepSeek case has been a wake-up call about the challenges governments face when trying to regulate the use of artificial intelligence in an increasingly interconnected global context. As AI applications like DeepSeek continue to advance and penetrate various sectors, it is essential for data protection policies to evolve to ensure users’ rights are not violated.

The incident with DeepSeek also reflects geopolitical tensions and concerns about digital sovereignty, especially when technologies come from countries with different privacy policies. In this sense, it is essential for governments to work together, establishing clear and effective regulatory frameworks that protect both individual privacy and national security in an increasingly digital world.

The future of artificial intelligence is full of possibilities, but only if it is managed responsibly and with proper oversight can we ensure that these advances do not compromise what we value most: our privacy and our security. If you would like to learn more about AI regulations, such as in the DeepSeek case, and stay informed about the security measures you need, write to us at [email protected]. We have a team of cybersecurity and artificial intelligence experts ready to provide the best solutions tailored to your business.

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