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Home Future Tech AI

AI Privacy Scandal: DeepSeek Sent South Korean User Data To China’s ByteDance

by Reshab Agarwal
February 19, 2025
in AI, News
Reading Time: 3 mins read
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South Korea’s data protection regulator has confirmed that DeepSeek, an artificial intelligence chatbot developed by a Chinese startup, transferred user data to ByteDance, the Chinese owner of TikTok. South Korea’s data regulator confirmed that DeepSeek sent South Korean user data to China’s ByteDance, raising privacy concerns. The Personal Information Protection Commission (PIPC) verified this connection but has yet to determine the nature and extent of the data shared.

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Amid concerns over data security, South Korea has temporarily suspended DeepSeek. The chatbot was removed from app stores over the weekend as part of the government’s precautionary measures. The suspension, which began on Saturday at 6 p.m., will continue until necessary improvements are made in compliance with the country’s data protection laws.

Regulatory Scrutiny and Government Response

Authorities had previously blocked access to DeepSeek across multiple government agencies, citing risks related to data privacy. In response to regulatory inquiries, DeepSeek has assigned a representative in South Korea and admitted lapses in adhering to local privacy regulations. The company has also expressed its willingness to cooperate with the PIPC to address concerns.

Investigations are ongoing to determine the extent to which DeepSeek sent South Korean user data to China’s ByteDance. DeepSeek gained global attention in January due to its claim of developing AI models at significantly lower costs than U.S. competitors. However, cybersecurity experts have raised alarms over potential data-sharing practices. A report by Security Scorecard on February 10 highlighted “multiple direct references to ByteDance-owned services” within DeepSeek’s Android app. The findings suggest integration with ByteDance’s analytics infrastructure and indicate that user behavior and device metadata could have been transmitted to ByteDance servers.

Several nations, including Australia and Taiwan, have already restricted the use of DeepSeek on government devices. The chatbot had been downloaded over a million times in South Korea before its removal from the Google Play Store and Apple App Store. Despite the ban, existing users can still access DeepSeek via web browsers.

Calls for Caution and Future Actions

Government agencies restricted access to the chatbot after confirming that DeepSeek sent South Korean user data to China’s ByteDance. The PIPC has advised users to be cautious while using DeepSeek and to avoid sharing personal information with the chatbot. The regulator has also emphasized the need for increased transparency in DeepSeek’s privacy policy. While DeepSeek has agreed to comply with South Korea’s regulations, further investigations are ongoing to determine the full scope of data transfers.

As scrutiny intensifies, governments worldwide continue to evaluate the security risks associated with AI-driven applications, particularly those linked to Chinese tech firms. The final decision on DeepSeek’s reinstatement in South Korea will depend on the implementation of necessary data protection measures.

Data Security Concerns and Legal Implications

The suspension of DeepSeek in South Korea highlights growing concerns over data privacy in AI applications. The discovery that user data was transmitted to ByteDance, a Chinese company, raises questions about how AI firms handle sensitive information. South Korean law requires explicit user consent before data is shared with third parties.

The situation also reflects broader fears about data security linked to Chinese tech firms. Critics argue that China’s National Intelligence Law could allow government access to private data. Even though ByteDance insists that private companies are protected under the law, many countries remain skeptical. The ban on DeepSeek from government devices in South Korea, Australia, and Taiwan shows increasing caution in handling AI services linked to China. Moreover, a U.S. cybersecurity report found DeepSeek deeply integrated with ByteDance’s systems, possibly transmitting user behavior data to servers linked to Chinese state entities.

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Reshab Agarwal

Reshab is a tech-enthusiast who likes to write about all things crypto. He is a Bitcoin bull and believes in a decentralized future of finance. Follow him on Twitter for more!

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