South Korea has halted downloads of Chinese start-up DeepSeek’s AI chatbot, R1, as officials investigate its compliance with local data protection laws. The country’s Personal Information Protection Commission (PIPC) stated Monday that the app was removed from Apple’s App Store and Google Play in South Korea after DeepSeek admitted it had not fully adhered to privacy regulations.
The PIPC said DeepSeek agreed to its request to suspend app downloads while improvements are made. Users who already have the chatbot installed can still access it.
“To avoid growing public concern, we advised DeepSeek to pause its service while aligning it with South Korea’s privacy standards,” said the commission, warning that making these changes will take considerable time.
Last month, South Korean authorities sent a formal inquiry to DeepSeek about how it handles personal information. Meanwhile, the Ministry of Trade, Industry and Energy imposed a temporary restriction on employee use of the app over security fears.
Other countries are also taking steps. Australia and Taiwan have banned DeepSeek’s use on government devices, and the U.S. Congress is reviewing legislation that could introduce a similar restriction. Italy’s data regulator has instructed DeepSeek to limit data processing for Italian users until more clarity is provided.
DeepSeek made headlines recently by claiming to have developed its AI chatbot for under $6 million — a stark contrast to the billions spent by Silicon Valley heavyweights like Google and OpenAI. The announcement cast doubt on Big Tech’s high-cost AI strategy and rattled investors.
In response, roughly $1 trillion in market value was wiped from the “Magnificent Seven” tech giants in a single day. However, critics question DeepSeek’s claims, suggesting the start-up may have had greater access to advanced hardware and undisclosed funding than it publicly stated.
