South Korea AI Basic Act
South Korea’s framework AI law, formally the Framework Act on the Development of Artificial Intelligence and Establishment of Trust, is commonly known as the AI Basic Act. It applies to “AI business operators”, a category that includes employers deploying AI tools affecting Korean employees, even where the AI system itself was developed outside Korea.
Last reviewed: 29 September 2026
Effective date and scope
The Act took effect on 22 January 2026, including for the employment provisions described below.
A separate revised enforcement decree, effective 21 July 2026, tightens requirements for foreign AI vendors above certain thresholds (over roughly โฌ662m prior-year global revenue, over roughly โฌ6.6m in Korean AI revenue, or over 1 million average daily Korean users), including a requirement to designate a Korean legal representative. This is a vendor-facing rule, not a separate employment deadline.
The Act extends to activity within Korea and to AI systems used outside Korea where they affect the Korean market, so multinational employers with Korean staff are in scope even if the AI vendor and hiring team are based elsewhere.
Employment is named as High-Impact AI
The Act explicitly names employment decision-making as a “High-Impact AI” category, a level of specificity uncommon among comparable laws elsewhere. It names, by category: resume screening tools, candidate ranking systems, AI-based skills assessments, performance evaluation algorithms, workforce analytics platforms, promotion or compensation decision tools, and automated disciplinary systems.
What employers need to do
Advance disclosure
Tell employees or applicants that AI is being used in a decision affecting them.
Human oversight
Build human oversight mechanisms into high-impact systems.
Documentation and governance
Keep records demonstrating safety and reliability, identify risks across the lifecycle and monitor incidents.
Generative AI
Separate rules apply to generative AI content used in workplace contexts.
How it is being enforced
Regulators have taken a guidance-first approach, with fines generally deferred through end-2026 except for cases of serious harm. Compliance expectations are expected to tighten as implementing rules mature.
This page is general information, not legal advice. AI employment law is moving quickly; confirm your position with qualified counsel before relying on it.
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