Startup Alliance Publishes Report on Key Issues of AI Basic Act Enforcement Decree

Call for Enforcement Decree Design Reflecting Industry Voices

Startup Alliance announced on the 1st that it has published a report titled "AI Basic Act: Foundation for Industrial Development or Beginning of Regulation?" ahead of the announcement of the draft enforcement decree for the "Basic Act on Artificial Intelligence Development and Trust-Based Creation (AI Basic Act)" scheduled to be implemented in January next year.

The "AI Basic Act" is the world's second AI-related law enacted after the European Union (EU)'s AI Act, containing a framework for government support and regulation for AI technology development and utilization. However, the industry is concerned that if the enforcement decree does not align with reality, it could lead to excessive regulatory burdens and market uncertainty.

Startup Alliance announced on the 1st that it has published a report titled "The AI Basic Act: Foundation for Industrial Development or the Beginning of Regulation?" Photo by Startup Alliance

The report presented five key issues to consider during the enforcement decree design process: ▲ Regulatory uncertainty due to the unclear definition of high-impact AI ▲ The broad scope of mandatory labeling for generative AI, which may restrict the application of innovative technologies ▲ Legal confusion and double regulation issues caused by overlap and conflicts with existing laws ▲ Excessive burdens on the industry due to unclear fact-finding requirements ▲ Concerns over technological innovation and market competition restrictions caused by the monopoly of AI inspection and certification authority by specific institutions.

In particular, it emphasized that if the industry's practical opinions are excluded during the enforcement decree design process, there is a high possibility that excessive regulations not aligned with the realities of the industrial field will be created, necessitating a more sophisticated and realistic design.

Lee Gi-dae, Center Director of Startup Alliance, said, "The government and industry must communicate closely to create an enforcement decree that is innovation-friendly and feasible," adding, "We hope this report will serve as a practical policy discussion foundation that balances AI technology development and the regulatory environment."