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Korea Herald
7 days ago
- Business
- Korea Herald
[Yoo Choon-sik] Uncertainty rises as AI law decrees miss schedule
South Korea has missed its self-imposed deadline of June 30 to disclose draft versions of enforcement decrees and rules for its basic artificial intelligence law. The National Assembly overwhelmingly passed the AI Basic Act — officially the Framework Act on the Development of Artificial Intelligence and Establishment of Foundation for Trust — in late December 2024. It took markets around the world by surprise, given that the country was quickly slipping into one of the worst political turmoils in years after then-President Yoon Suk Yeol's failed attempt to impose martial law triggered widespread unrest. The subsequent promulgation of the law by the Cabinet Council in January this year also came as a surprise, given that the government was being run by an acting president. The Ministry of Science and ICT said at that time that it would disclose draft versions of enforcement decrees and rules by the end of June for public comment so that they could be finalized early enough for companies and users alike to prepare for the January 2026 implementation of the law and ensure smoother compliance. On the surface, the delay is understandable, given that President Lee Jae Myung, who is just over a month into his tenure, has yet to get his administration completely into shape. Lee started work without the usual transition period because the election was held to fill the presidency vacated by the forced removal of Yoon by the Constitutional Court after his impeachment a few months earlier. However, companies are growing nervous as the period of darkness is extended regarding the subordinate legislation process, because they have to prepare strategies for what will emerge as one of the region's major markets for AI business opportunities, with limited clarity and time to act accordingly. The delay also comes amid complaints among many stakeholders within and outside South Korea that the country, while enacting the law later than the European Union, will be the first jurisdiction in the world to implement regulatory obligations. The EU is not due to enforce its provisions until several months after South Korea shows its hand. For instance, while South Korea's AI Basic Law is set to take effect in late January 2026, most regulatory provisions of the EU AI Act — such as those on high-risk systems, general-purpose models, governance, penalties and national authorities — are due to take effect from August 2026 in multiple steps, with staggered deadlines. By the time South Korea's government and National Assembly hurriedly passed the law in late 2024, policymakers and industry experts alike thought having the law in place would help the country's AI companies doing business in major markets, where they expected authorities to introduce tough regulations. However, earlier this year, the global AI policy landscape took a dramatic turn toward prioritizing the development of AI innovation, especially since the announcement by DeepSeek and other Chinese developers of the successful development of world-class AI systems. Major countries including the United States, Britain, Canada and Germany have recently taken bold steps to foster AI development, with some of them explicitly shifting their policy stance away from regulation. This change in the global landscape has raised concerns that South Korea may have moved too hastily, locking itself into a regulatory-first approach. Uncertainty is worse than anything These concerns even led to the then-opposition Democratic Party of Korea — now the ruling party — proposing a revision bill in April to suspend regulatory provisions for three years, emphasizing that 'the AI-related trends in the US, the EU, and Japan, have been shifting away from regulation toward promotion and industry growth.' There is no indication of the revision bill proceeding swiftly, with the leader of the proposing lawmakers acknowledging that the revision may not be approved quickly, according to media reports. However, these concerns apparently have prompted the Ministry of Science and ICT to seek ways to effectively delay full implementation of the bill's obligations to avoid stifling innovation. '(The ministry) is considering introducing a grace period on the provision imposing fines for some time after the enforcement of the law so that there will be an effect similar to a delay in the regulatory measure,' the ministry recently told President Lee's state affairs planning committee, according to media reports published recently. The ministry was referring to Article 43 of the law, stipulating that the Minister of Science and ICT could levy a fine of up to 30 million won ($22,000) for those in violation of obligations listed in Articles 31, 36, and 40. However, the same article delegates further details to a presidential decree, allowing flexibility in enforcement. The planning team has been receiving briefings from the outgoing government's ministries, so this plan may still change when the new minister takes office. Bae Kyung-hoon, head of LG AI Research, was nominated to be the first minister of science and ICT under the Lee administration, but has yet to take office after confirmation hearings held last month. All issues related to subordinate legislation also remain highly uncertain because Lee has yet to unveil how to implement his election pledges, including one to revamp the Presidential Committee on AI — launched in late 2024 by his predecessor to review and coordinate AI policy issues but inactive for several months, mainly due to the political turmoil of that period. It remains to be seen how many of the tentative plans prepared by the outgoing government will be upheld by the Lee administration and how soon South Korea will clear the remaining uncertainty regarding some conflicting regulatory obligations between different laws and guidelines, experts said. In stark contrast to the heightened uncertainty continuing, there is one thing that everyone agrees always makes sense: Uncertainty is worse than anything for the business world as well as for the investor sentiment toward South Korea, especially in the fast-moving domain of artificial intelligence. Yoo Choon-sik worked for nearly 30 years at Reuters, including as the chief Korea economics correspondent, and briefly worked as a business strategy consultant. The views expressed here are the writer's own. — Ed.
UPI
26-06-2025
- Politics
- UPI
Panama extends suspension of constitutional rights amid protests
People walk along a blocked street during the day of protests in Changuinola, Bocas del Toro, Panama, this past weekend. Panama will extend its suspension of constitutional rights in Bocas del Toro province through June 29 in response to escalating anti-government protests. Photo by Bienvenido Velasco/EPA-EFE June 26 (UPI) -- Panama will extend its suspension of constitutional rights in Bocas del Toro province through June 29 in response to escalating anti-government protests that have left one person dead, more than 300 detained and dozens injured, including 14 police officers. After two months of roadblocks, demonstrations and vandalism, Panama's Cabinet Council said it was necessary to temporarily restrict the constitutional rights to free assembly and movement in an effort to restore order in the region. On June 20, the government issued a five-day decree suspending those rights and launched a special operation that deployed 1,500 additional police officers to the province. Bocas del Toro has become the epicenter of a deep political and social crisis in Panama, sparked by mass protests following the approval of a pension system reform and a security cooperation memorandum signed by the Panamanian and U.S. governments. While the government has presented the memorandum as a way to strengthen security and cooperation, many Panamanians see it as a surrender of national sovereignty and a sign of U.S. interference in the country's internal affairs. The current unrest in Panama stems from a combination of long-standing issues -- including poverty, social inequality and a lack of opportunity -- that have fueled widespread protests and violence. Rejection of the pension reform, which eliminated some benefits, mobilized teachers and workers from the U.S.-based banana company Chiquita Brands. The company ultimately shut down its operations in Panama due to the strike. While some benefits were reinstated for banana workers, other affected groups -- including teachers -- remain mobilized and continue to demand the full repeal of the reform. The demonstrations, which often include road blockades and clashes, have been met with a heavy police crackdown. Violent confrontations and mass arrests have led to accusations of excessive force and due process violations by authorities. According to Panamanian media reports, young people and teenagers make up a significant portion of the protesters. The government has defended its crackdown, claiming that "criminal gangs" and "delinquent groups" have infiltrated otherwise peaceful demonstrations. A growing concern is the lack of information about the whereabouts of those detained, who have been transferred to at least three provinces outside Bocas del Toro -- compromising their right to a legal defense, attorney José Luis Santamaría told La Estrella de Panamá. Amid the crisis, President José Raúl Mulino has proposed a sweeping "state reform" and a constitutional overhaul. He acknowledged that the current system is "broken" and "completely collapsed," reflecting widespread public frustration with Panama's institutions and bureaucracy. Still, the promise of reform has been met with skepticism. Many Panamanians have seen similar proposals fail to deliver results in the past, and distrust in the political class remains high. Critics question whether the initiative offers a real solution or merely seeks to calm public anger without addressing the root causes of the crisis. The nationwide teachers' strike has entered its third month, with an estimated 30,000 educators participating -- roughly 57% of Panama's public school workforce. On June 24, the government issued a decree allowing the immediate hiring of interim teachers to fill vacancies in areas where the strike continues. The measure will remain in effect through December 2025. The teachers' union has announced plans to challenge the decree in court, arguing it is unconstitutional. The protests have dealt a severe blow to the economy, with daily losses estimated between $80 million and more than $100 million. The unrest has directly affected key exports, local businesses and investor confidence. Panama's banana industry -- one of its traditional agricultural and export pillars -- accounted for about 17% of total agricultural export value in 2023, or roughly $140 million. While the government maintains its growth targets, any recovery will depend on ending the blockades and restoring social order. Although the protests have not directly disrupted operations at the Panama Canal, they have caused indirect logistical delays. Road blockades have slowed or complicated the delivery of supplies, replacement parts and essential services such as crew changes and food. Thanks to improved water levels and operational upgrades, the Panama Canal saw a 30% increase in vessel transits and a 22% rise in cargo volume between October 2024 and May 2025, according to the Panama Canal Authority. Including both the expanded and original Panamax locks, the canal recorded 8,057 transits over the eight-month period -- up 29.2% from 6,235 during the same span of fiscal 2024.
