South Korea’s Personal Information Protection Commission (PIPC) has flagged Chinese AI startup DeepSeek for transferring personal user data and AI prompt content abroad without user consent. The agency said on Thursday that Hangzhou DeepSeek Artificial Intelligence Co. Ltd. sent sensitive user information to multiple entities in China and the United States, violating South Korea’s personal data protection regulations.
The case dates back to January 2024, when DeepSeek was briefly available on South Korea’s app market. By February, the PIPC had suspended new downloads of the app after the company acknowledged non-compliance with key privacy rules.
Prompts and Device Data Transferred to Volcano Engine
The PIPC stated that DeepSeek transferred user-entered AI prompt content, along with device, network, and app-related information, to Beijing Volcano Engine Technology Co. Ltd., a cloud and AI infrastructure company. This transfer was made without informing users or obtaining consent, a violation of South Korea’s personal data handling standards.
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DeepSeek reportedly told the agency that the data transfer was intended to enhance user experience, but later informed authorities that it had blocked the transfer of prompt content to Volcano Engine from April 10 onwards.
The regulator has now issued a corrective recommendation, instructing DeepSeek to:
Immediately remove all AI prompt content previously transferred to Volcano Engine
Establish a legal basis for any future transfers of personal data outside South Korea
Data Privacy Enforcement Tightens Across Jurisdictions
This case reflects growing regulatory scrutiny over how AI platforms collect, store, and process user-generated content and personal identifiers, particularly in jurisdictions with robust privacy frameworks like South Korea.
DeepSeek, which has not issued a formal public response as of Thursday, is among a wave of AI firms facing questions around transparency, cross-border data flows, and compliance with local laws as governments seek to balance innovation with individual rights.
