South Korea Joins Italy In Halting Downloads Of China's DeepSeek Amid Global Scrutiny Over Privacy Issues

South Korea’s Personal Information Protection Commission (PIPC) on Monday said it has halted new downloads of DeepSeek.

What Happened: The suspension will remain in place until the app complies with South Korea’s privacy regulations, reported Reuters.

The app’s web service remains accessible in the country. This action, effective since Saturday, aims to ensure adherence to data protection laws.

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DeepSeek has acknowledged partial non-compliance with South Korean data protection laws and has appointed legal representatives in the country. The PIPC has stressed the need for improvements before allowing new downloads to resume.

Why It's Important: In January 2025, tech stocks worldwide dropped amid fears that DeepSeek's low-cost model could threaten U.S. AI giants.

Nvidia Corp., the top U.S. maker of AI chips, saw its stock plunge 17% on Jan. 27, wiping out about $600 billion in market value — a record single-day loss.

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The suspension in South Korea is part of a broader pattern of global scrutiny and regulatory actions against DeepSeek.

Last month, Italy’s data protection authority, the Garante, also ordered DeepSeek to block its chatbot over similar privacy concerns.

Earlier this month, Taiwan banned the use of DeepSeek’s AI services in government departments, citing security concerns. Australia has also banned DeepSeek from all government devices.

The U.S. is also investigating DeepSeek for potential violations of an AI technology embargo. The White House has also placed the company under scrutiny for potential national security risks.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo courtesy: Deepseek