South Korea Suspends DeepSeek App Over Data Transfers

South Korea’s Personal Information Protection Commission (PIPC) has accused Chinese AI startup DeepSeek of transferring personal user data, including device information and user-entered AI prompts, to companies in China and the United States without user consent when its chatbot R1 launched in January. The data transfers, including to Beijing-based Volcano Engine, were not disclosed in DeepSeek’s privacy policy, leading South Korea to suspend new downloads of the R1 app in February. DeepSeek has admitted deficiencies in following Korea’s data protection laws and claims to have blocked the transfer of prompt content as of April 10. The PIPC has recommended that DeepSeek delete previously transferred prompt content and establish a legal framework for future international data transfers. China’s Foreign Ministry has denied that it directs companies to collect or store data illegally. The case highlights growing global scrutiny over how AI companies manage personal data amid strict privacy regulations.