South Korea Accuses DeepSeek of Data Sharing with ByteDance

South Korea’s data protection regulator has accused Chinese AI startup DeepSeek of sharing user data with ByteDance, the owner of TikTok. "We confirmed DeepSeek communicating with ByteDance," the Personal Information Protection Commission (PIPC) told Yonhap News Agency. However, officials have yet to determine what data was transferred and how extensive the sharing was.

South Korea pulls DeepSeek from App Stores

Over the weekend, South Korea suspended new downloads of DeepSeek due to security concerns. The app, which made waves in the AI industry by offering a powerful and low-cost alternative to ChatGPT, had been downloaded over a million times in South Korea before it was pulled from Apple and Google’s app stores. Existing users can still access it through a web browser.

How has DeepSeek responded?

DeepSeek has acknowledged its failure to properly consider South Korean data protection laws. In response to the concerns, the company has assigned a representative in South Korea and pledged to cooperate with regulators. PIPC stated that it "found out traffic generated by third-party data transfers and insufficient transparency in DeepSeek’s privacy policy." The regulator also advised users to be cautious and avoid entering personal information into the chatbot.

This isn't the first time DeepSeek has come under scrutiny. SecurityScorecard, a US cybersecurity firm, previously published a report highlighting "multiple direct references to ByteDance-owned" services within DeepSeek’s Android app. The firm raised concerns that user behavior and device metadata were "likely sent to ByteDance servers" and even detected data being transmitted to domains linked to Chinese state-owned entities.

Are Chinese companies keeping your data private?

The controversy surrounding DeepSeek adds to broader concerns about Chinese tech companies and data privacy. Critics point to China’s National Intelligence Law, which they claim allows the government to access data from any Chinese company. ByteDance, which is headquartered in Beijing but has global investors, has repeatedly denied allegations that it shares user data with the Chinese government.

DeepSeek’s rapid rise in popularity has drawn intense scrutiny from multiple governments. Since its launch in January, the AI chatbot has been investigated or banned in countries such as Australia, Taiwan, Italy, France, Germany, and the US. Many of these countries give violations of data protection laws as the primary reason for their actions.

In the US, concerns over Chinese access to user data were a key factor in the push to ban TikTok. While that ban is currently on hold, it underscores the growing distrust of Chinese tech companies handling user data. Some experts believe the backlash against DeepSeek is part of a larger effort to prevent potential security risks posed by AI platforms with ties to China.

ByteDance has downplayed its connection to DeepSeek, claiming that the AI company merely uses its cloud services, known as Volcano Engine. According to The Independent, ByteDance insists that this "does not mean it has access to DeepSeek data." However, South Korean authorities remain unconvinced and are continuing their investigation.

With an official inquiry now underway, DeepSeek will have to address concerns over its data handling practices. Whether this results in more countries banning the app remains to be seen, but the controversy highlights the increasing tensions between global regulators and Chinese tech companies over data security.

For now, South Korean users are left with warnings from their government: be cautious, and think twice before sharing personal information with AI platforms that may not fully comply with local privacy laws.