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DeepSeek in Deep Trouble as South Korea Exposes Secret Data Transfer

DeepSeek in Deep Trouble as South Korea Exposes Secret Data Transfer

Date: April 24, 2025

Downloaded DeepSeek? Your personal data and AI prompts may have been sent to China—without your permission.

In a data privacy shocker that’s setting off alarm bells across the AI world, South Korea’s privacy watchdog has accused Chinese AI startup DeepSeek of secretly transferring user data — including sensitive AI prompt content — without consent. The revelation has sparked concerns around user privacy, international data transfers, and the growing scrutiny of AI startups operating across borders.

According to South Korea’s Personal Information Protection Commission (PIPC), DeepSeek quietly shared user information with Beijing Volcano Engine Technology Co. Ltd., a Chinese tech firm, right after launching its service in the Korean market earlier this year. 

The data included not just device and app details, but also the actual AI prompts users typed in — arguably the most private and revealing part of any interaction with AI chatbots. What’s worse? Users had no idea this was happening!

The transfers reportedly began in January 2025 during DeepSeek’s South Korean debut and continued until February, when app downloads were halted following growing regulatory pressure. DeepSeek, in its defense, told authorities the data sharing was intended to “enhance user experience” — a familiar tech phrase that tends to raise more eyebrows than confidence. 

The company now claims it stopped sending AI prompt content as of April 10, but South Korea’s regulators aren’t letting it slide that easily. The PIPC has responded with a firm corrective recommendation, demanding that DeepSeek immediately delete the previously transferred prompt data and establish a proper legal framework for any future data transfers. 

As of now, DeepSeek has remained silent in the face of media inquiries, adding to the growing unease about how AI companies handle sensitive user data, especially across national borders. For South Korean users and privacy advocates, this case is more than just a one-time breach. It’s a warning to the entire AI ecosystem: transparency isn’t optional anymore.

Arpit Dubey

By Arpit Dubey LinkedIn Icon

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