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AI Issues and Implications in Q2, 2024

2024.07.16

1.

Content Regulation and Copyright
 

  • Government Response to the Issue of Compensation for the Use of Copyrighted Works in Training Generative AI

The whirlwind of technological advancement has triggered a growing demand for an equitable copyright management and compensation system for using copyrighted works in training generative AI. In attempt to keep up with such rapid changes, the Korean government has been active in recent years in providing regulatory and policy guidance. The Ministry of Culture, Sports and Tourism and the Korea Copyright Commission published the “Guideline on Copyrights for Generative AI” in December 2023, which is to be followed by establishing a running “AI-Copyright System Improvement Working Group 2024” by the end of 2024 with the goal of pursuing statutory amendments and institutional reorganization in 2025.
 

2.

Privacy
 

  • Recent Regulatory Activities related to Preliminary Inspection of AI Businesses and Automated Decisions

The Personal Information Protection Commission (“PIPC”) recently finalized its resolutions based on its preliminary inspection of major AI businesses. In addition, the PIPC released draft sub-regulations and a draft guide regarding automated decisions. We recommend closely monitoring the PIPC’s follow-up regulatory activities regarding AI businesses and other enforcement trends.
 

3.

Antitrust and Competiton
 

  • Key Takeaways from the OECD-KFTC Conference on Generative AI and Competition Policy

The Korea Fair Trade Commission recently co-hosted a conference with the Organization for Economic Cooperation and Development on emerging competition issues in the generative AI sector, as well as key legal and policy developments. The topics that were most frequently discussed during the conference included striking a balance between access to data and technological innovation and competition concerns arising from AI’s integration into cloud computing.
 

4.

Labor and Employment
 

  • Recent Regulatory Trends on AI Hiring and HR Management

The use of AI in hiring and HR management may fall under “automated decisions” under the amended Personal Information Protection Act. In such cases, employers must comply with new legal obligations, including disclosing the criteria and procedures for AI-driven hiring decisions and detailing how personal information is processed. Additionally, data subjects have the right to refuse or request an explanation of such “automated decisions.”
 

5.

Governance and Risk Management
 

  • AI Seoul Summit and Beyond: The Future of AI Regulation in South Korea

After the AI Safety Summit in the UK in November 2023, the AI Seoul Summit took place in Seoul in May 2024. This summit emphasized safety, innovation, and inclusiveness as key objectives for AI development. Meanwhile, with the start of the 22nd National Assembly in May, new Framework Bills on AI were introduced.

 

[Korean Version]
[Related Newsletter] AI Issues and Implications in Q3, 2024
[Related Newsletter] AI Issues and Implications in Q1, 2024

Attachment AI Issues and Implications in Q2, 2024.pdf

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