Seoul: South Korea will implement a new set of artificial intelligence (AI) regulations next month amid concerns among startups and other businesses that the comprehensive rules could stymie industry growth and burden smaller firms, industry sources said Sunday.
According to Emirates News Agency, the AI framework act is scheduled to take effect on January 22, 2026, calling for the establishment of a national AI committee, the formulation of a basic three-year AI plan, and the imposition of safety and transparency requirements, including disclosure obligations for some AI systems. If implemented as planned, South Korea would become the world's first country to enforce a comprehensive AI regulatory framework.
The European Union was the first to pass AI-related legislation, but it plans to apply most of its rules starting August, with some provisions expected to be delayed until 2027 amid mounting pressure from businesses and intensifying global competition.
"Companies may not have sufficient time to prepare for the new rules, as the enforcement decree is expected to be finalized only shortly before the law takes effect due to procedural requirements," an official from the Korea Internet Corporations Association said. "This will be particularly overwhelming for startups."
A recent survey by Startup Alliance showed that 98% of 101 local AI startups said they have not established a response system to comply with the new law. Of the respondents, 48.5% said they were unfamiliar with the law and unprepared, while another 48.5% said they were aware of it but ill-prepared.
"If the current implementation timeline is maintained, some companies may be forced to abruptly change or suspend services after January 22," another industry official said. "If regulations are too strict, companies will have stronger incentives to launch services overseas rather than at home," he added.
Industry watchers noted that such regulatory pressure is believed to be one reason a growing number of South Korean AI startups are considering Japan, which has adopted a softer, voluntary governance approach.