Vice Prime Minister Bae Kyunghoon: "Considering Grace Period for AI Basic Act Fact-Finding Authority to Ease Burden on Startups"
Hwang Jeonga: "A Three-Year Grace Period Needed for Fact-Finding Investigations and Administrative Fines for Ventures and Startups"
Vice Prime Minister and Minister of Science and ICT Bae Kyunghoon announced that the government is considering a grace period for the "fact-finding authority" stipulated in the Artificial Intelligence (AI) Basic Act, set to take effect next year, in order to ease the burden on startups.
On October 29, during a comprehensive audit by the National Assembly's Science, ICT, Broadcasting, and Communications Committee, Vice Prime Minister Bae stated, "It is a reality that AI venture and startup companies feel significant pressure regarding fact-finding investigations," adding, "We are considering whether to grant a grace period and what support measures to provide."
During the audit, Assemblywoman Hwang Jeonga of the Democratic Party of Korea urged for a relaxation of the fact-finding and administrative fine provisions in the AI Basic Act, arguing that they could hinder industrial development. Citing an analysis by the Information Technology and Innovation Foundation (ITIF), a U.S. think tank, Assemblywoman Hwang suggested, "There are concerns that Korea's regulations could undermine global competitiveness," and proposed introducing a system that allows for a correction period before imposing administrative fines.
Assemblywoman Hwang particularly emphasized, "For ventures and startups, both fact-finding investigations and administrative fines should be subject to a grace period, and this period should be broadly applied for about three years," adding, "Such measures would demonstrate the government's strong commitment to fostering the AI industry."
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In response, Vice Prime Minister Bae stated, "Regarding the administrative fine provisions, we are considering a grace period so that our companies can sufficiently develop their AI businesses for more than one year."
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