The controversy surrounding Chinese artificial intelligence startup DeepSeek has escalated as South Korean authorities accuse the company of transferring user data and AI prompts without proper consent. The Personal Information Protection Commission (PIPC) released a statement on April 18, 2025, alleging that DeepSeek bypassed user permissions during its launch in South Korea in January.
According to the PIPC, DeepSeek transmitted personal information and user-entered AI prompts to entities in China and the United States without obtaining prior user consent. This violation of South Korea’s privacy laws led to the suspension of the app’s downloads within the country since February 2025.
In response, DeepSeek claimed that the data transfer was intended to enhance the user experience and stated that they had stopped the practice as of April 10. However, the damage had already been done, raising questions globally about data security and ethical AI use.
Despite attempts to reach out to DeepSeek for an official statement, no response addressing the data privacy violations has been provided at this time.
Founded in 2023, DeepSeek quickly gained momentum in the AI landscape, touting models that could rival industry giants like OpenAI and Stability AI at a lower cost and energy consumption. The company’s app reached the top of Apple’s App Store rankings in the U.S. in January, surpassing ChatGPT.
After its initial success, DeepSeek reported being targeted by large-scale malicious attacks, coinciding with a significant decline in shares of AI chip providers such as NVIDIA and Broadcom. NVIDIA suffered a $589 million market cap loss in a single day following the alleged attacks.
The rapid rise of DeepSeek also attracted cybercriminals, prompting a surge in phishing, malware, and investment scams using the company’s name. Cyble reported multiple deceptive domains impersonating DeepSeek and engaging in fraudulent schemes to steal cryptocurrency and personal data.
The international backlash against DeepSeek extended beyond South Korea, with Taiwan’s Ministry of Digital Affairs banning the use of the AI chatbot in the public sector due to concerns over political bias. U.S. agencies such as the U.S. Navy and NASA, along with Japanese officials, have advised against using DeepSeek, citing national security risks.
The ongoing scrutiny of DeepSeek reflects broader concerns about privacy, ethics, and cybersecurity in the AI industry. The company’s future hinges on its ability to address security flaws and rebuild trust with users.
As the situation continues to unfold, The Cyber Express will closely monitor developments and provide updates on the data privacy controversy and any official statements from DeepSeek. It’s a story that underscores the challenges and risks associated with the rapid evolution of artificial intelligence.