Framework Act on the Development of Artificial Intelligence and Establishment of Trust

Summary

South Korea's Framework Act on AI represents a pivotal moment in global AI governance, establishing the country as the third major jurisdiction (after the EU and China) to enact comprehensive AI legislation. Unlike the EU AI Act's risk-based approach or China's sector-specific regulations, South Korea's law uniquely centers on "trust establishment" as its core principle, reflecting Korean values around social harmony and technological adoption. Set to take effect in January 2026, this legislation will govern AI development and deployment across all sectors in one of the world's most AI-ready economies, making it essential reading for anyone doing business in or with South Korea.

What makes this different from other AI laws

South Korea's approach stands apart in several key ways:

• Trust as a foundational principle: While other laws focus primarily on risk mitigation, this framework explicitly aims to build public confidence in AI systems through transparency and accountability measures.
• Economic development focus: The law balances regulatory oversight with explicit provisions to foster AI innovation and maintain South Korea's competitive edge in the global AI market.
• Cultural context: The legislation reflects Korean societal values around collective responsibility and consensus-building, potentially offering a model for other Asian nations developing their own AI governance frameworks.
• Integration with existing tech infrastructure: South Korea's advanced digital infrastructure and high technology adoption rates create a unique regulatory environment where AI governance can be implemented more seamlessly than in less digitized economies.

Timeline and compliance roadmap

• January 2025: Law enacted by the National Assembly
• January 2026: Full implementation begins
• 2026-2027: Expected rollout of specific regulatory guidance and enforcement mechanisms
• 2027 onwards: Regular compliance audits and framework updates anticipated

Organizations should begin compliance preparation immediately, as the one-year implementation window is relatively short for comprehensive AI governance changes.

Who this resource is for

• Multinational corporations with operations or partnerships in South Korea, particularly those in technology, manufacturing, healthcare, and financial services sectors
• AI developers and tech companies planning to enter the Korean market or currently serving Korean customers
• Legal and compliance professionals working for organizations with Korean business interests who need to understand the regulatory landscape
• Government officials and policymakers in other Asian countries considering similar AI governance approaches
• Academic researchers studying comparative AI governance and the evolution of international AI regulatory frameworks
• Supply chain managers whose organizations work with Korean AI companies or integrate Korean-developed AI technologies

Key sectors and applications covered

The Framework Act applies broadly across South Korea's economy, with particular implications for:

• Chaebol conglomerates like Samsung, LG, and Hyundai that are heavily investing in AI across multiple business lines
• Gaming and entertainment industries where Korea leads globally and AI is increasingly integrated
• Smart city initiatives in Seoul, Busan, and other major urban centers
• Manufacturing and Industry 4.0 applications in Korea's advanced industrial sector
• Healthcare AI in Korea's digitized medical system
• Financial services AI applications in one of the world's most digitized banking environments

What to watch for in implementation

• Regulatory guidance specifics: The framework law will require detailed implementing regulations - monitor announcements from the Ministry of Science and ICT and other relevant agencies
• Enforcement mechanisms: South Korea's approach to penalties and compliance monitoring will set important precedents for Asian AI governance
• International coordination: Watch for how South Korea coordinates its framework with EU AI Act compliance for companies operating in both jurisdictions
• Industry feedback integration: Korean policymaking often involves extensive industry consultation - implementation details may evolve based on stakeholder input
• Regional influence: This law may serve as a template for other Asian nations, potentially creating a "Korean model" of AI governance alongside the "Brussels Effect"