Seoul, Dec 14 (NationPress) South Korea is set to roll out a new series of artificial intelligence (AI) regulations next month, amid rising concerns from startups and various businesses that these extensive rules might hinder industry development and impose excessive burdens on smaller companies, according to industry insiders on Sunday.

The AI framework act is slated to be enacted on Jan. 22, 2026, which will necessitate the formation of a national AI committee, the creation of a foundational three-year AI plan, and the introduction of safety and transparency measures, including mandatory disclosure for certain AI systems, as detailed by the sources.

If executed as anticipated, South Korea will become the first nation globally to implement a comprehensive AI regulatory structure, as reported by Yonhap news agency.

While the European Union was the pioneer in passing AI-related legislation, it intends to enforce most of its rules starting in August, with some elements expected to be postponed until 2027, due to increasing pressure from businesses and escalating global competition.

"Businesses might not have adequate time to adapt to the new regulations, as the enforcement decree is expected to be finalized only shortly before the law comes into force due to procedural necessities," an official from the Korea Internet Corporations Association expressed. "This will be particularly overwhelming for startups."

A recent study by Startup Alliance revealed that 98% of 101 local AI startups reported having no established response mechanism to align with the new legislation.

Among the participants, 48.5% admitted to being unaware of the law and unprepared, while another 48.5% acknowledged they knew about it but felt ill-equipped.

"If the current rollout timeline remains unchanged, some companies might have to abruptly modify or halt services after Jan. 22," another industry representative remarked.

"If regulations are excessively stringent, businesses will be more inclined to launch services abroad rather than domestically," they added.

Industry analysts noted that such regulatory pressure is believed to be a significant factor driving an increasing number of South Korean AI startups to consider Japan, which has adopted a more lenient and voluntary governance approach.

Particularly concerning are the compulsory watermarking rules that would mandate labeling AI-generated content, despite the necessity to curb deepfakes and other forms of misuse, they indicated.

"Even AI-generated content often involves hundreds of individuals working to enhance quality, but consumers might shy away once they are labeled as 'AI-generated,'" an official from an AI content firm stated.

"There are also uncertainties in the labeling requirements, and I don't believe the perspectives of those who fully grasp the content creation industry and other relevant experts have been adequately considered," they added.