South Korea’s data protection watchdog has launched an investigation into artificial intelligence startup DeepSeek, following allegations that the company transferred user information and input data—also known as prompts—without obtaining proper consent.

The Personal Information Protection Commission (PIPC), South Korea’s top privacy authority, issued a formal statement today revealing that it had initiated a probe into DeepSeek's data handling practices. The move comes after reports surfaced suggesting that the AI firm collected and transferred sensitive user data to overseas servers without transparent disclosure or legal authorization.

According to preliminary findings shared by the PIPC, DeepSeek may have gathered both personal user details and AI prompt history from its Korean users and transmitted them to servers located outside the country, potentially violating South Korea’s stringent data protection laws.

“We are deeply concerned about the possibility that user data, including personally identifiable information and detailed AI interaction logs, were exported without clear user awareness or consent,” a spokesperson for the commission said during a press briefing in Seoul. “Such actions may constitute a serious breach of the Personal Information Protection Act.”

DeepSeek, a rapidly growing player in the generative AI sector, offers advanced large language models (LLMs) and chatbot services similar to those of global competitors. The company has not yet issued a detailed response to the allegations, though a brief statement posted on its official website states that it is “fully cooperating with the relevant authorities and committed to upholding user privacy.”

The case has drawn significant public attention, particularly amid growing scrutiny worldwide over how AI companies handle user data. In South Korea, concerns over digital privacy have intensified in recent years, prompting regulators to tighten enforcement of data governance regulations.

Legal experts suggest that if the PIPC’s investigation confirms the unauthorized data transfers, DeepSeek could face substantial fines and possible restrictions on its operations in the country. The outcome could also influence future policy around AI data ethics and cross-border information transfers.

“This case may become a watershed moment for AI regulation in South Korea,” said Dr. Han Jae-yoon, a data law specialist at Seoul National University. “The intersection of personal data rights and emerging AI technologies is still an evolving legal frontier.”

As the investigation unfolds, the PIPC has urged users who suspect their data may have been mishandled to come forward. Meanwhile, the commission has assured the public that it will take appropriate action to ensure that companies operating in South Korea comply with national data protection standards.

Further updates are expected in the coming weeks as the probe advances and more information becomes available.