
The Startup Alliance (Director Lee Ki-dae) published an issue paper titled “AI Basic Law: The Foundation for Industrial Development? The Beginning of Regulation?” on the 1st, containing concerns and suggestions for improvement from the industry ahead of the announcement of the draft enforcement ordinance of the “Basic Act on the Promotion of Artificial Intelligence and Creation of Trust Foundation ” (hereinafter referred to as the AI Basic Act), which is scheduled to take effect in January 2026.
The 'AI Framework Act' is the second AI-related law enacted in the world after the European Union's (EU) AI Act, and presents a framework for government support and regulation for the development and use of AI technology. However, since the specific level of regulation and details are determined in the enforcement decree, the industry is concerned that if the enforcement decree does not match reality, it could lead to excessive regulatory burden and market uncertainty.
This report presents five key issues that should be given priority consideration during the design process of the enforcement decree: ▲regulatory uncertainty due to the unclear definition of ‘high-impact AI’ ▲the broad scope of the obligation to label generative AI may restrict the application of innovative technologies ▲legal confusion and double regulation issues due to overlap and conflict with existing laws ▲excessive burden on the industrial sector due to unclear fact-finding requirements ▲concerns about restrictions on technological innovation and market competition due to the monopoly of AI verification and certification authority by a specific organization.
In particular, if the enforcement decree is designed without the practical opinions of the industrial community, there is a high possibility that excessive regulations that do not fit the reality of the industrial field will be created, and he emphasized that a more elaborate and realistic design is needed so that the enforcement decree can actually work in the field and support industrial innovation.
Startup Alliance Center Director Lee Ki- dae emphasized, “If we simply apply the standards of advanced countries when introducing fields where domestic industries are lagging, such as AI, into the system, there is a possibility that the domestic AI industry will wither away.” He added, “The government and industry should communicate closely to create an enforcement ordinance that is innovation-friendly and feasible.” He added, “I hope this report will serve as the basis for practical policy discussions that will strike a balance between the advancement of AI technology and the regulatory environment.”
The Startup Alliance Issue Paper is a report that focuses on legal, regulatory, and policy issues related to the startup ecosystem . It can be downloaded for free from the Startup Alliance website .
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