According to AI Wire Media, this assessment was made by the Yonhap news agency.

The legislation, officially titled the “Framework Act on the Development of Artificial Intelligence and the Establishment of a Foundation for Trust,” is described as the world’s first truly comprehensive AI law, rather than a collection of fragmented rules across multiple regulations. The act establishes legal frameworks and requirements for generative AI products that technology companies must comply with, along with penalties for violations.

In particular, content generated by AI models must be clearly labeled with a digital watermark. Companies are also required to inform users that their services are AI-powered and ensure user safety.

Yonhap notes that developers and legal entities now bear significantly greater responsibility for addressing the spread of deepfakes and AI-generated misinformation. Authorities are granted the right to investigate cases related to such violations.

In addition, the law obliges technology companies to open local branches in South Korea if:

  • their services are used daily by more than 1 million people in the country, or

  • their domestic revenue exceeds 10 billion won ($6.8 million), or

  • they operate in South Korea and have global annual revenue exceeding 1 trillion won ($681 million).

These criteria apply to companies such as OpenAI and Google.

The government plans to introduce a one-year transition period, during which no fines will be imposed for violations, allowing companies time to adapt.