South Korea has taken decisive action against DeepSeek, a Chinese AI startup, by suspending downloads of its R1 chatbot due to significant privacy concerns. The Personal Information Protection Commission (PIPC) announced that the chatbot has been removed from local versions of Apple's App Store and Google Play after DeepSeek acknowledged non-compliance with South Korea's personal data protection regulations.

DeepSeek's Privacy Violations

The PIPC's investigation revealed that DeepSeek failed to transparently disclose its data handling practices, particularly concerning third-party data transfers. Additionally, the company was found to be collecting excessive personal information from users. These violations prompted the PIPC to recommend a temporary suspension of the chatbot's services until necessary improvements are implemented. Despite the suspension of new downloads, existing users retain access to the app.

National Security Implications

The National Intelligence Service (NIS) of South Korea has raised alarms over DeepSeek's data collection methods, accusing the app of excessively gathering personal data, including keystroke patterns that could uniquely identify users. There are also concerns that chat logs may be transferred to servers operated by Chinese companies, potentially granting the Chinese government access under local laws. These security issues have led various South Korean ministries and agencies to block access to DeepSeek on work devices to prevent potential leaks of sensitive information.

Global Repercussions and Company Response

The controversy surrounding DeepSeek is not confined to South Korea. Italy's data protection authority has ordered a block on DeepSeek's chatbot over similar privacy concerns. In response to the mounting scrutiny, DeepSeek has acknowledged partial non-compliance with local privacy laws and has committed to appointing legal representatives in South Korea to address these issues. However, the company has yet to provide a comprehensive public statement regarding the allegations.