South Korea Suspends DeepSeek Downloads Amid Data Privacy Probe

South Korea’s Personal Information Protection Commission (PIPC) has temporarily halted the download of DeepSeek, a Chinese AI chatbot, from app stores in the country. The decision, announced on Feb. 17, follows growing concerns about how the company collects and processes user data.

DeepSeek agreed to suspend new downloads on Feb. 15 and cooperate with the agency to strengthen its privacy measures before relaunching. While the restriction applies to new users, existing DeepSeek users can continue accessing the service, though the PIPC has urged caution until the investigation concludes.

“The commission intends to closely inspect the personal information processing status of DeepSeek during the service suspension period to improve compliance with the protection law and alleviate concerns about personal information protection of our citizens,” the agency said in its statement.

Concerns Over User Data and National Security

DeepSeek’s AI chatbot has quickly come under scrutiny for potential privacy and security risks, sparking regulatory and public concern. The chatbot operates similarly to OpenAI’s ChatGPT but has raised questions about how it manages user information, particularly in light of China’s strict data control policies.

The PIPC confirmed that it began analyzing DeepSeek’s data policies shortly after the chatbot’s launch and sent an inquiry to the company requesting details about its data collection and processing practices.

“As a result of our own analysis, we have identified some shortcomings in communication functions and personal information processing policies with third-party service providers that have been pointed out in domestic and international media outlets,” the commission stated.

Adding to the intrigue, DeepSeek’s launch coincided with a drop in U.S. stock and crypto markets, though there is no confirmed link between the two events.

Regulatory Scrutiny in South Korea

As part of its probe, the PIPC will conduct on-site inspections to determine whether DeepSeek complies with South Korean data protection laws. The agency will also investigate how the AI firm stores and processes data from its existing users.

In addition to reviewing DeepSeek’s practices, the commission plans to recommend necessary improvements to ensure compliance with domestic privacy regulations. The case is also expected to serve as a precedent, providing AI companies with clearer regulatory guidelines to prevent similar concerns in the future.

Last year, the PIPC carried out a preliminary investigation into six AI firms operating in South Korea, a process that took five months.