DeepSeek, a Chinese AI startup, has paused downloads of its chatbot apps in South Korea. South Korea removed DeepSeek from app stores due to privacy concerns raised by local authorities. This move follows discussions with local authorities regarding privacy concerns, according to South Korean officials on Monday.
The Personal Information Protection Commission in South Korea stated that DeepSeek’s apps were removed from the South Korean versions of Apple’s App Store and Google Play on Saturday evening. The company agreed to enhance privacy protections before relaunching the apps. Users who already have the app on their phones or personal computers can continue using it.
Nam Seok, director of the commission’s investigation division, urged users to delete the app or avoid entering personal information until the issues are resolved. The commission began reviewing DeepSeek’s services last month after concerns about the AI model collecting excessive personal data.
Privacy Issues and Lack of Transparency
After an investigation, South Korea removes DeepSeek from app stores to address data protection issues. Investigations revealed that DeepSeek lacked transparency about third-party data transfers and possibly collected excessive personal information. Many South Korean government agencies and companies have blocked DeepSeek on their networks or prohibited employees from using the app, citing data privacy concerns.
According to a report by Wiseapp Retail, around 1.2 million smartphone users in South Korea used DeepSeek during the fourth week of January. It became the second-most-popular AI model in the country, following ChatGPT.
Government Restrictions and Global Scrutiny
South Korea’s Ministry of Trade, Industry, and Energy recently imposed a temporary ban on employees using DeepSeek on work devices due to security concerns. Globally, Australia and Taiwan have banned the chatbot on government devices, while the U.S. Congress is considering a similar measure.
Italy’s data protection agency ordered DeepSeek to limit the processing of Italian users’ data until the company provides more details about data management practices. Analyst Youm Heung-youl from Soonchunhyang University noted that DeepSeek had not implemented a privacy policy specifically for South Korean users, although it has policies for the EU and other countries.
DeepSeek Acknowledges Privacy Shortcomings
Following complaints about data security, South Korea removes DeepSeek from app stores and calls for privacy improvements. DeepSeek admitted that it had not fully considered local privacy laws. The South Korean data protection agency assessed that aligning the app with local regulations would take time. As a precaution, the commission recommended temporarily suspending the app, and DeepSeek agreed.
Although the app has been removed from local app stores, users who already downloaded it can still use the service. South Korean authorities have advised caution, recommending users avoid entering personal information until the final review results are published.
Impact on the Global AI Industry
DeepSeek gained attention after claiming that its chatbot was developed at a fraction of the cost compared to AI models by tech giants like Google and OpenAI. The announcement sparked concerns about Silicon Valley’s investment strategies, leading to a market value drop of about $1 trillion for the “Magnificent Seven” tech firms.
In response to the growing bans, the Chinese government criticized the “politicization” of economic and technological matters. It also stated that China does not require companies or individuals to collect or store data illegally.
DeepSeek’s temporary suspension in South Korea highlights growing concerns about data privacy in AI applications. The South Korean government found that DeepSeek was not transparent about how it shared user data with third parties and possibly collected too much personal information. This raises questions about the company’s data handling practices and its commitment to user privacy.
