South Korea suspended the downloads of R1, an AI chatbot created by Chinese start-up DeepSeek, until it scrutinizes the latter’s privacy practices carefully. The action, announced on Monday by the country’s privacy regulator, came after DeepSeek admitted non-compliance with personal data protection regulations.
The Personal Information Protection Commission confirmed that R1 has been removed from Apple’s App Store and Google Play in the local editions. Nevertheless, current users who have downloaded the app will still be able to use it.
To answer growing concerns, the commission recommended that DeepSeek temporarily suspend its service until such time that enhancements are made. It acknowledged that synchronizing the app with the local laws would “necessarily take a considerable amount of time.”
DeepSeek has not issued a statement on the suspension. This follows a preliminary written query from the privacy watchdog last month, requesting an explanation on how DeepSeek handles users’ personal data.
In a parallel development, South Korea’s Ministry of Trade, Industry and Energy banned the use of DeepSeek’s app by government officials on security grounds recently. This follows similar bans by Australia and Taiwan for government devices, with the U.S. Congress now debating a bill to institute a similar ban.
Italy’s data protection agency has also directed DeepSeek to limit processing of Italian users’ data until further clarification about data handling procedures is provided.
DeepSeek gained significant attention last month when it revealed that it developed its chatbot at a fraction of the cost of its equivalents from the big tech companies like Google and OpenAI. The start-up claimed that its development cost was below $6 million, a difference from the billions invested by its Silicon Valley rivals. This was unexpected, and most people wondered about the sustainability of the traditional models of investment in the AI industry.
The launch announcement triggered a swift market response, with approximately $1 trillion in market value lost by so-called “Magnificent Seven” technology firms in one day. DeepSeek’s claim to be operating on a shoestring budget has led skeptics to wonder if the start-up has indeed had access to more advanced technology and investment than it is admitting.
