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."
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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