Chinese artificial intelligence startup DeepSeek rose to the mobile app store charts right after launching back in January. The AI app’s arrival also crashed stocks of major chip giants like NVIDIA and other tech companies. Since its launch, multiple controversies have surrounded DeepSeek’s data handling policies. The Trump administration is considering a ban on the use of DeepSeek AI in the US.

In February, South Korea accused DeepSeek of sharing user data without consent with China’s ByteDance (owner of TikTok). At the time, the regulator didn’t confirm which data ByteDance received and to what extent. However, now the Personal Information Protection Commission (PIPC), South Korea’s national data protection authority, has concluded that DeepSeek illegally sent user data to companies in China.

The South Korean authority has released its findings in connection with a privacy and security review of DeepSeek. As per the agency, during DeepSeek’s presence in South Korea until February, it sent user data to several companies in China and the US without getting necessary consent from users or disclosing the policy.

The regulator highlighted a case in which the artificial intelligence chatbot sent information about the user’s AI prompts to a Chinese cloud service platform named Beijing Volcano Engine Technology Co. Furthermore, the platform also received information about the user’s device, network, and app use.

The PIPC has identified the aforementioned company as an “affiliate of” TikTok owner ByteDance. However, the information privacy watchdog noted that the cloud platform “is a separate legal entity and has no relation to ByteDance,” as translated by Google.

In its response, DeepSeek told the authority that it sent the user data to Volcano Engine to improve the user experience initially. However, it immediately blocked the transfer of AI prompt content from April 10.

Chinese Foreign Ministry spokesperson responds

Chinese Foreign Ministry spokesperson Gua Jiakun stated that he wasn’t aware of the specific situation when a reporter questioned him about South Korea’s claim that DeepSeek transfers user data without user consent. “We have never — and will never — require companies or individuals to collect or store data through illegal means,” Guo stated.

That said, the South Korean regulator has decided to issue a corrective recommendation for the AI chatbot to immediately destroy user AI prompt information transferred to the cloud engine in China. Furthermore, it has recommended that DeepSeek establish a legal basis for transferring personal information to companies or servers outside South Korea.

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