Korea Enacts AI Law Reshaping Startup Risk

On Thursday, South Korea will become the first country to enforce the Framework Act on the Development of Artificial Intelligence and the Creation of a Foundation for Trust, establishing a National AI Committee and an AI Safety Institute. The law mandates watermarking and a new 'high-impact AI' category across healthcare, energy, finance and recruitment; vague thresholds and only 2% of startups reporting readiness risk raising compliance costs and stifling innovation.