South Korea’s Data Protection Authority Claims DeepSeek Transferred User Data & Prompts Overseas Without Consent During Active Service in January

The emergence of DeepSeek has raised alarms across various regions, especially as its artificial intelligence chatbot gained traction in multiple markets. However, some countries, notably South Korea, have moved to ban the service altogether, citing significant security concerns. Recent developments suggest that the apprehension surrounding DeepSeek may be justified, as a data protection agency has raised serious allegations regarding unauthorized data transmission.

Unauthorized Data Transmission Allegations Against DeepSeek

A recent report by Reuters sheds light on the controversial practices allegedly employed by DeepSeek when it first launched in South Korea in January. The Personal Information Protection Commission (PIPC) of South Korea stated that the service was found to be relaying users’ personal data to various entities in China and the United States without proper consent. This critical violation of user privacy has resulted in heightened scrutiny of DeepSeek’s operations within the country.

Within a short period after its release, DeepSeek faced a complete suspension by February 2025, following revelations from the PIPC. The agency indicated that DeepSeek acknowledged its oversight concerning privacy regulations, which played a significant role in its decision to cease operations. Furthermore, there are claims that the AI chatbot not only transmitted personal user information but also sent prompts submitted by South Korean users to a Chinese firm known as Beijing Volcano Engine Technology. This included sensitive details about users’ networks and devices.

In response to the agency’s findings, DeepSeek asserted that the data sharing with Beijing Volcano Engine Technology was intended to enhance user experience. However, in what appears to be a measure to comply with South Korean privacy regulations, the company blocked the transmission of AI prompts starting April 10. Notably, China’s foreign ministry stated that it has no policy advocating for illegal collection or storage of user data by AI companies. Yet, despite these reassurances, South Korean authorities remain unconvinced, leading to the continued inactivity of the DeepSeek service within the region.

For DeepSeek to regain access to the South Korean market, a more transparent approach regarding its data management practices may be essential. Clarity on how user information is handled could potentially alleviate some of the concerns raised by regulatory bodies.

News Source: Reuters

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