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AI & Data Protection: PIPC's New Regulatory Direction

Source: Personal Information Protection Commission

Seoul, South Korea - The Personal Information Protection Commission (PIPC) released its "Policy Direction for Safe Use of Personal Data in the Age of Artificial Intelligence.

Why it matters.

The move underscores the global movement toward greater regulatory control of artificial intelligence (AI) technologies.

The increasing use of AI in the healthcare, education, and retail sectors is raising privacy concerns.

Between 2019 and 2022, South Korea's AI market valuation is expected to increase from KRW 1.9 trillion (USD 1.5 billion) to KRW 4 trillion (USD 3.1 billion).

However, compliance under the Personal Information Protection Act (PIPA) still needs to be clarified for some companies.

The Key Points

The PIPC's new AI policy emphasizes data privacy and encourages the safe use of data to support the growth of the AI industry.

The regulatory stance is "principles-based" rather than "rules-based," and a dedicated "AI Privacy Team" will oversee AI-related data privacy.

Here are the AI policy focus areas:

  • Design and Planning: Emphasizes embedding privacy by design from the earliest stages of development.
  • Data Aggregation: Defines processing principles based on data types, such as public data, visual data, and biometric data.
  • Model Building and Training: Emphasizes the importance of pseudonymization and privacy-enhancing technologies (PETs).
  • AI Service Delivery: Emphasizes transparency and data subject rights.

The Big Picture:

Upcoming Guidelines: PIPC plans to release domain-specific guidelines in October by establishing a "Policy Advisory Council for AI Privacy." The guidelines will address pseudonymization standards, biometric data regulations, AI transparency, and the use of synthetic data.

R&D and Risk Assessment: The PIPC will support research on privacy-enhancing technologies and initiate a risk assessment matrix for AI systems. A comprehensive AI risk identification mechanism is expected by 2025.

International Collaboration: Recognizing the global impact of AI, PIPC is committed to strengthening international cooperation. Building on President Yoon Suk Yeol's "Paris Initiative" of June 2023, PIPC will work with international privacy organizations to streamline global AI norms.

Engaging with AI Giants: PIPC aims to maintain an open dialogue with major AI companies such as OpenAI, Microsoft, and Google to ensure that industry feedback is always incorporated.