South Korea
AI Agent Legal Status: partial · Autonomy: moderate
Legal Framework
South Korea passed the AI Basic Act in 2025, effective January 2026, establishing a risk-based classification system and an AI Safety Institute. The National Strategy for AI (2019) set the foundation for government investment and talent development. Crypto regulation is maturing with the Virtual Asset Users Protection Act. The regulatory approach balances innovation promotion with safety oversight.
Key Laws & Regulations
- ◆AI Basic Act (2025, effective Jan 2026)
- ◆National Strategy for Artificial Intelligence (2019)
- ◆Virtual Asset Users Protection Act
Business Formation
Standard entity types include Chusik Hoesa (stock corporation) and Yuhan Hoesa (LLC). Foreign investment is generally welcome in the tech sector with streamlined registration through KOTRA.
Tax Implications
Progressive CIT from 9% to 24% based on taxable income brackets. R&D tax credits available for AI-related investments. Special tax zones offer additional incentives.
Opportunities
Government investment in AI R&D and infrastructure. Major corporate AI initiatives create partnership opportunities. Strong semiconductor and hardware ecosystem supports edge AI development.
Highlights
The AI Basic Act provides regulatory clarity with a risk-based framework. South Korea boasts a world-class tech ecosystem with companies like Samsung, LG, and Kakao driving AI adoption. Strong 5G infrastructure and digital literacy support rapid deployment of AI applications.
Risks & Challenges
The AI Basic Act's high-risk classification system may impose significant compliance burdens. Strict data protection requirements under PIPA. Intense regulatory scrutiny of crypto and digital assets following market incidents.