SEOUL: South Korea’s defence and trade ministries have taken significant steps to protect sensitive data by blocking access to the Chinese artificial intelligence (AI) start-up, DeepSeek, on Thursday. According to the latest South China Morning Post report, this decision follows concerns raised by South Korea’s data watchdog about how DeepSeek handles user information. The move reflects the growing international scrutiny of the company’s data practices as it seeks to make inroads in global AI markets.

DeepSeek’s rapid rise raises data privacy concerns

Last month, DeepSeek launched its R1 chatbot, which quickly attracted attention by claiming to rival leading AI systems in the United States at a fraction of the cost. However, its rapid ascent has raised alarms, especially in countries like South Korea, France, and Italy, about how the company handles sensitive user data. In response to these concerns, South Korea’s government issued a formal request for information from DeepSeek regarding its data management policies.

South Korea’s defence ministry acted swiftly to block DeepSeek’s access to military computers connected to the internet. Additionally, the trade ministry imposed a temporary ban on the use of DeepSeek across all ministry PCs. A spokesperson for the defence ministry stated that the decision was made to reinforce security measures surrounding generative AI tools and ensure the protection of military personnel’s devices.

Global reactions and growing scrutiny

The South Korean ban comes amid a broader global backlash against DeepSeek’s operations. The company, which uses H800 chips (permitted for sale to China until 2023 under US export controls), is facing increasing scrutiny from various nations. Italy has already launched an investigation into DeepSeek’s R1 model, blocking it from processing user data in the country, while Australia has banned the platform from government devices following advice from security agencies.

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The situation is being closely watched as DeepSeek’s R1 chatbot challenges AI industry giants like OpenAI and Samsung Electronics. As part of a broader effort to limit China’s influence on global AI, the US, Japan, and South Korea are strengthening alliances in advanced AI technologies, including the Stargate Project, a joint initiative with aims to build $500 billion in AI infrastructure. South Korea’s tech companies, Samsung Electronics and SK hynix, are set to play a crucial role in supporting this initiative by providing cutting-edge chips for AI servers.

Balancing innovation with security

AI experts, such as Professor Kim Jang-hyun of Sungkyunkwan University, believe South Korea’s decision is a reasonable step in safeguarding national interests. “The potential for data collection by DeepSeek whenever government employees interact with the platform could pose significant risks,” he noted. However, Kim also pointed out the challenge of preventing government employees from accessing DeepSeek from personal devices or home networks, which could circumvent official bans.

As the global competition for AI dominance intensifies, nations are increasingly finding themselves at the crossroads of fostering innovation while ensuring the security of critical data. South Korea’s move reflects the broader dilemma faced by governments worldwide as they navigate the complex terrain of advanced AI technologies and data protection.