South Korean Tech Giants Unprepared for New AI Laws

According to Cryptopolitan on December 28, 2025, key players in South Korea's tech sector have expressed serious concerns regarding the imminent enforcement of a new national AI regulation law. Industry representatives, including Naver and Kakao, stated that business processes and compliance systems are not yet adapted to the strict requirements taking effect next month. The main difficulties stem from clauses regarding mandatory labeling of AI content and algorithmic transparency.

This situation highlights the gap between the speed of legislative initiatives and the actual capacity of businesses to implement them. Companies fear that hasty enforcement could lead to multimillion-dollar fines and stifle innovation in one of the world's most advanced digital markets. Experts warn that unless the government provides a transition period or clarifications, the Korean AI industry may face temporary paralysis in launching new products.

Source: Cryptopolitan