DeepSeek transferred user data without permission, claims South Korean data protection authority

South Korea Alleges Unconsented Overseas Data Transfers by AI Company DeepSeek

The emergence of DeepSeek, a powerful AI chatbot, has stirred quite a reaction globally, with several regions expressing concerns over data privacy and security. Among these, South Korea has taken an assertive stance by imposing a ban on the service, citing potential violations of user privacy. Recent revelations have added fuel to the fire, suggesting that South Korea’s decision might have been justified.

There have been reports that DeepSeek was allegedly transmitting user data and prompts to other countries, specifically to companies based in China and the United States, without obtaining proper consent. This discovery came to light while the service was still operational in South Korea after its launch in January.

According to sources, South Korea’s Personal Information Protection Commission released a statement indicating that personal user information was being relayed to external entities without the necessary authorization. DeepSeek found itself in hot water when it admitted to not fully adhering to the privacy protocols mandated by the watchdog. Consequently, by February 2025, DeepSeek’s operations within South Korea were entirely halted.

Further investigations revealed that not only personal data but also AI prompts entered by users were allegedly sent to a Chinese company, Beijing Volcano Engine Technology. This raised red flags about user information being potentially exposed alongside device, network, and application details.

DeepSeek defended its actions by stating that the data transfer was intended to enhance user experience. Additionally, in a bid to comply with South Korean privacy regulations, the company ceased the transmission of AI prompts from April 10. Despite reassurances from China’s foreign ministry that it does not compel AI companies to gather or store user information unlawfully, South Korean authorities remain skeptical and have not lifted the service suspension.

For DeepSeek to regain access to the South Korean market, it might be crucial for the company to be more transparent about its data-handling policies. Such transparency could reassure users and authorities alike, potentially paving the way for its return in the region.