Starting the Preparation of Subordinate Regulations Amid Equity Controversy Between Domestic Companies and Global Big Tech
"The discussion surrounding the AI Basic Law, which passed the National Assembly in December last year and was approved at the Cabinet meeting this month, is actively ongoing. The AI Basic Law is a law designed to foster the development of South Korea's AI industry and protect the rights and dignity of its citizens." / DALL-E generated image. 4o mini There is a controversy surrounding the AI Basic Law, with claims of reverse discrimination. The argument is that in a situation where global big tech companies are skillfully avoiding domestic laws in platform services, regulatory measures might unfairly target only domestic companies. The government has stated, "If foreign companies are not subject to regulation, domestic companies will not be either." According to the IT industry on the 22nd, concerns about reverse discrimination against domestic companies have been growing since the process of drafting subordinate regulations for the Artificial Intelligence Basic Law (AI Basic Law) on AI development and trust-building began. The Ministry of Science and ICT launched a task force on the 15th to draft the subordinate regulations for the AI Basic Law, which is scheduled to be promulgated this month and fully implemented in January of next year. The AI Basic Law serves as the foundation for policy support to foster the development of the AI industry, while also aiming to protect the rights and dignity of citizens from the potential risks of AI technology. It is the second AI-related law to be enacted in the world. The Ministry of Science and ICT plans to expedite the task force's work, aiming to complete the drafting of the subordinate regulations by June, well ahead of the deadline of December next year. The AI Basic Law has been one of the key pieces of legislation strongly advocated by the IT industry for swift enactment and implementation. However, the controversy over reverse discrimination arose after the law was enacted because of concerns that if its various regulations are applied only to domestic AI companies, it could put them at a disadvantage in competition with global big tech companies. Industry insiders argue that, while the urgent need for legislation to secure AI technology sovereignty and long-term support policies is clear, they are skeptical about whether there are ways to regulate and sanction global big tech companies within the framework of domestic law. In the past, global big tech companies, citing their foreign status, have either been subject to minimal enforcement of domestic laws or used loopholes to avoid them, paying less taxes and evading legal responsibilities compared to domestic companies. An IT service platform representative, Mr. A, stated, "The AI Basic Law has achieved the outcome of mandating foreign operators to designate domestic agents." However, he also expressed concerns, saying, "Domestic companies are ultimately forced to develop and provide services under the AI Basic Law, but under the development regulations, foreign companies will likely remain unaffected. This raises questions about whether the law is fair and equitable." The AI Basic Law strengthens regulations on foreign AI companies, requiring global big tech companies that impact the domestic market to designate a domestic agent. This is to ensure that these companies provide the necessary support for implementing the government's safety and reliability measures. Failure to designate an agent will result in a fine. The government plans to implement the AI Basic Law with a focus on "promotion" at 70-80% and "regulation" at 20-30%, aiming to alleviate the concerns of the IT industry. On the 21st, Kim Kyung-man, the Director of AI-Based Policy at the Ministry of Science and ICT, who attended the seminar on "Analysis and Evaluation of the AI Basic Law and Future Tasks" co-hosted by Kim & Chang Law Firm and the Korea Data Law and Policy Association, stated, "Regulations under the AI Basic Law that do not apply to foreign companies will not be applied to domestic companies either." He further explained, "For issues such as overlapping regulations or confusion in policy governance that slow down the changes and implementation of the system, we plan to address these promptly through the National AI Commission to ensure that there are no difficulties in competing with foreign companies." Park Min-chul, a lawyer at Kim & Chang Law Firm, expressed concern, stating, "The AI Basic Law is still at a stage where it is difficult to predict what regulations will be in place, leading to fears that it could become the starting point for further regulations." He added, "The subordinate regulations should be clarified while avoiding the addition of unnecessary content, and should be used as a mechanism to increase predictability." ChatGPT를 사용하여 번역한 기사입니다.
