South Korea has raised alarms over potential data-sharing practices between Chinese AI startup DeepSeek and ByteDance, the parent company of TikTok. The country's data protection regulator confirmed communication between the two entities, sparking renewed concerns about user privacy and data security.
The revelation comes after South Korea removed DeepSeek from app stores, citing data protection issues. The Personal Information Protection Commission (PIPC) has yet to determine the extent of the data transfer but has urged caution among users. Read on to know more!
DeepSeek's Rise And Global Scrutiny
DeepSeek made headlines in January after claims surfaced that its AI model had been trained at a significantly lower cost than U.S. competitors like ChatGPT. The news triggered a massive sell-off in global stock markets, reflecting the potential disruptive power of the Chinese AI firm.
Since then, governments worldwide have scrutinized DeepSeek's data practices. In February, a U.S. cybersecurity firm flagged possible data-sharing activities between DeepSeek and ByteDance, further intensifying concerns.
App Store Ban And User Access
Despite its meteoric rise in app rankings across countries like the U.S. and the UK, DeepSeek has since fallen behind ChatGPT in popularity. In South Korea alone, the app was downloaded over a million times before its removal from Apple and Google's app stores. While new downloads are restricted, existing users can still access DeepSeek via web browsers.
ByteDance Connection And Data Privacy Laws
The potential link between DeepSeek and ByteDance has reignited debates over China's National Intelligence Law, which critics argue allows the Chinese government access to any data held by domestic companies.
However, ByteDance, headquartered in Beijing, maintains that its ownership structure includes global investors and that legal protections exist for private companies and personal data.
Concerns over data security have influenced policy decisions beyond South Korea. The United States has upheld a ban on TikTok, citing fears over user data transmission to China. The ban remains in place until April 5 as the U.S. government continues negotiations on a resolution.
Cybersecurity Warnings And Expert Analysis
Security Scorecard, a cybersecurity firm, analyzed DeepSeek's Android app and reported multiple direct references to ByteDance-owned services. Their findings suggest that:
- Deep integration with ByteDance's analytics and performance monitoring infrastructure.
- Potential transmission of user behavior and device metadata to ByteDance servers.
- Data transfers to domains associated with Chinese state-owned entities.
Regulatory Action And User Advisory
South Korea's PIPC stated that DeepSeek's privacy policy lacked transparency and that third-party data transfers were detected. While DeepSeek is cooperating with regulators and acknowledged non-compliance with South Korean privacy laws, authorities have advised users to avoid entering personal information into the chatbot.
With this event, South Korea joins other nations, including Australia and Taiwan, in banning DeepSeek from government devices.