As Korea dives headfirst into AI growth, gov’t barely dips toe in waters of caution
The annual budget for AI-related initiatives nears 10 trillion won ($7.4 billion) this year, but only around one-hundredth of that is allocated toward addressing potential harms.
Ha Jung-woo, standing vice chair of the National Artificial Intelligence Strategy Committee, speaks at the committee's first-anniversary performance report meeting in Seoul on Sept. 8.YONHAP
The government's AI drive is barreling ahead with little apparent concern for crashing, as only two of its 533 AI-related projects this year address potential harms while the country pours nearly 10 trillion won ($7.4 billion) into promoting AI.
The two, overseen by the Korea Media and Communications Commission, were the only ones to directly mention the potential adverse effects of AI and allocate funding to address them.
Most of the remaining projects were designed around the benefits and commercial potential of AI and focused on areas such as industrial promotion, technological development and building AI-related systems.
“Countless companies are making money thanks to advances in AI technology, and users are enjoying the convenience like a festival, but no festival is fun for everyone,” a source from the local information technology industry said. “Someone has to think about the noise, the garbage and the disorder that come with the festival. That someone is the government.”
In the short term, concerns include the use of AI for crime and the covert use of the technology at work or school to gain an unfair advantage.
Over the longer term, scholars warn of cognitive decline caused by an overreliance on AI and a breakdown in human relationships.
“Developing the AI industry is of course important, but right now, all policy appears to be focused solely on that,” Hahn So-won, a professor of psychology at Seoul National University, said. “There are clear adverse effects from AI use, including declining learning abilities and damaged relationships, so there is an urgent need to restore some balance, at least at the policy level.”
National Artificial Intelligence Strategy Committee officials pose for a photo at the committee's first-anniversary performance report meeting in Seoul on Sept. 8.YONHAP
One of the projects run by the media commission aims to operate a platform for reporting risks and adverse effects such as AI hallucination, unethical behavior, rights violations and criminal misuse. The other aims to gather empirical evidence on the social risks and opportunities posed by emerging technologies, potential threats to user rights and the need for government intervention.
But the projects have budgets of just 278 million won and 1.14 billion won, respectively, around one-hundredth of a percent of the government’s overall AI-related budget this year of 9.9 trillion won, three times the amount allocated last year.
The government has acknowledged the potential adverse effects of AI and is working on measures to address them.
Korea's AI ethics principles were unveiled by the Ministry of Science and ICT and other ministries in August, setting out guidelines for individuals, society and humanity in the AI era.
A memorandum of understanding was signed between the Ministry of Education, the ICT Ministry and the Ministry of Gender Equality and Family in March to create a safe and inclusive AI and digital society. The ministries said they would strengthen cooperation on protecting young people online, improving AI ethics and safety frameworks to prevent overdependence and boosting digital literacy through schools and youth facilities.
A graphic of a robot and ChatGPT's logoROOM-PC
But only a small number of projects addressing the adverse effects of AI appear to have made it into the ministries’ proposed budgets for next year, submitted to the National Assembly on Sept. 1.
“Among the projects submitted as part of the government proposal is one aimed at demonstrating and expanding measures to address the adverse effects of AI,” an ICT Ministry official said. “There are more if projects aimed at ensuring AI safety and reliability are included.”
Other ministries, including the Education Ministry, have faced criticism that they are effectively failing to act because they have not allocated budgets to the issue.
“There are no separate new projects related to the adverse effects of AI included in next year’s budget proposal, but we are preparing to release generative AI use guidelines for elementary and middle schools and AI education ethics principles in the second half of the year to prevent adverse effects such as AI overdependence,” an Education Ministry official said.
Legislation has also lagged.
The only comprehensive law specifically governing AI is the Framework Act on the Development of Artificial Intelligence and the Creation of a Foundation for Trust, which took effect on Jan. 22.
The Framework Act on the Development of Artificial Intelligence and the Creation of a Foundation for Trust is passed in the National Assembly on Dec. 26, 2024.YONHAP
More than half of the 13 functions assigned to the National Artificial Intelligence Strategy Committee under the law are aimed at promoting the industry.
Some have called for legislation with a stronger regulatory purpose, similar to the European Union’s AI Act that was adopted in 2024. The EU law is a comprehensive AI regulatory framework that classifies AI systems according to their level of risk and imposes different obligations based on those risks.
Korea's emphasis on industrial promotion has even led to talk in academia that research is more likely to receive funding if it aims to advance the AI industry.
“Humanities research examining the risks of AI or longitudinal studies assessing those risks over the long term struggle to receive funding because there is an atmosphere that such work doesn’t make money right away or gets in the way of industrial development,” a professor in the social sciences said.
Research into AI’s broader impact also remains limited.
An illustration of ChatGPTEPA/YONHAP
“I understand that research into the risks of AI is beginning in Korea as well, but much of it focuses on ethical issues,” Prof. Hahn said. “Research into its social and emotional effects remains extremely limited because it takes a great deal of time.”
Experts say the government needs comprehensive measures, a central body capable of implementing them consistently and sufficient funding.
While the National Artificial Intelligence Strategy Committee currently reviews and coordinates AI policies across ministries, its role is limited because it was created to promote the industry and remains an advisory body under the president. It has no legal authority to spend government funds to directly implement policies or compel ministries to follow its decisions.
“The committee needs real authority if it is to make a tangible difference,” Yoo Hyun-jae, a professor at Sogang University’s College of Communication, said. “For Korea to become a more mature AI society in the long run, the committee needs to serve as a command center that addresses not only technological advancement but also issues such as overdependence on AI and the growing reliance on AI for knowledge.”
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
