South Korea Reveals AI App DeepSeek’s Unauthorised Data Transfers to China and the US: Intentional or Oversight?

Chinese AI App Under Fire In South Korea Over Unauthorised Data Transfers

A Chinese artificial intelligence firm is facing scrutiny in South Korea for transferring personal data and user-generated content without permission.

Hangzhou DeepSeek Artificial Intelligence Co. Ltd, the developer of the DeepSeek app, allegedly shared sensitive user information with overseas companies during its short-lived presence on South Korea’s app market earlier this year.

Before concerns were raised, DeepSeek’s chatbot app briefly became the most downloaded in Apple’s App Store, overtaking OpenAI’s ChatGPT.

It was commended for its speed and efficiency, but its rapid rise soon drew scrutiny over issues such as censorship of sensitive topics, data privacy, and its links to the Chinese government.

What Did South Korea’s Privacy Watchdog Uncover?

According to South Korea’s Personal Information Protection Commission (PIPC), DeepSeek failed to obtain user consent before sending personal data to three firms in China and one in the United States.

This breach occurred in January 2025, when the app was still available for download in the country.

The commission also revealed that DeepSeek shared user-entered AI prompts and device details—including network and app information—with Beijing Volcano Engine Technology Co. Ltd.

The company admitted to the transfer and claimed it was aimed at improving the user experience.

DeepSeek informed authorities that it halted the transfer of AI prompt content to Volcano Engine from 10 April.

However, South Korea’s privacy body has now issued a corrective recommendation demanding the deletion of all previously transferred prompt data and requiring the company to establish a legal basis for any future cross-border data transfers.

Why Was The App Pulled From South Korean Stores?

In February 2025, South Korea’s data protection agency suspended further downloads of the DeepSeek app after the company acknowledged failing to comply with key data protection rules.

During the review, regulators discovered that DeepSeek’s published privacy policy was only available in Chinese and English.

The policy lacked clear instructions on how personal information would be destroyed and failed to outline specific data protection measures.

What Is DeepSeek’s Explanation?

The company stated that some data was transferred to Volcano Engine to address security flaws and to enhance the user interface.

However, this was done without proper user permission.

It was only after discussions with the South Korean agency that the company stopped sharing user prompt content.

China Responds To Growing Concerns

China’s Foreign Ministry has denied any government involvement in the data practices under scrutiny.

Spokesman Guo Jiakun told reporters in Beijing that China “attaches high importance to privacy and data security and rigorously upholds legal measures in this area,” pushing back against what it called the politicisation of trade and tech-related matters.

Guo stressed,

“We have not asked – and will never ask – for companies or individuals to collect or store data through illegal means.”

How Will DeepSeek Move Forward In South Korea?

DeepSeek has yet to publicly respond to the findings.

Its operations remain suspended in South Korea, and the future of its services in the country depends on how it responds to the regulator’s recommendations and whether it aligns with South Korea’s legal data handling standards.