5 Critical Things You Need to Know About the Chief AI Officer and South Korean AI Act

Описание: South Korean AI law has officially enacted the Framework Act on the Development of Artificial Intelligence and Establishment of Trust (often called the AI Basic Act), which took full effect on January 22, 2026. This legislation makes South Korea the first country to enforce a comprehensive, nationwide AI law, preceding the full implementation of the European Union's AI Act.
Core Regulatory Requirements
The law establishes mandatory guardrails for transparency and safety, particularly for high-risk systems:
• Transparency & Labeling: Companies must provide advance notice when services use generative or "high-impact" AI. AI-generated content (images, audio, video) that could be mistaken for reality must be clearly labeled, often via watermarks.
• High-Impact AI Oversight: AI used in critical sectors—such as healthcare, nuclear safety, transportation, finance (credit screening), and hiring—must have human oversight and risk management plans.
• High-Performance AI: Systems exceeding a computational threshold of floating-point operations (FLOPs) are subject to stricter safety obligations and lifecycle risk assessments.
• Explainability: Affected individuals have the right to request a "meaningful explanation" of the logic and criteria behind AI-generated decisions that significantly impact them.
Enforcement and Penalties
• Fines: Violations, such as failing to label AI content or neglecting to appoint a domestic representative, can result in administrative fines of up to 30 million won (~$21,000).
• Grace Period: To help businesses adapt, the government has implemented a one-year grace period before administrative fines are actively imposed.
• Extraterritorial Reach: The law applies to foreign companies if their AI services affect users or markets in South Korea. Large foreign firms (e.g., those with over 1 million domestic users or specific revenue thresholds) must designate a domestic representative.
Governance Structure
The act creates new institutions to manage the AI landscape:
• National AI Strategy Committee: Chaired by the President, this body serves as the "control tower" for national AI policy.
• AI Safety Research Institute: Tasked with evaluating risks, developing safety standards, and conducting international cooperation on AI safety.
• AI Policy Center: Focuses on industrial support, professional training, and analyzing the societal impacts of AI.