Korea’s subsequent step in synthetic intelligence coverage is shifting from pilot tasks to institutional reform. The proposed AI Utilization Promotion Act for SMEs marks the nation’s first try and legislate a nationwide framework supporting small and medium enterprises in adopting AI. The transfer aligns with Korea’s AI Transformation (AX) agenda, turning AI accessibility and information equity into pillars of future industrial competitiveness.
New AI Regulation to Strengthen SME Innovation and Knowledge Entry
On October 27, Consultant Kim Dong-ah of the Democratic Social gathering launched the Act on the Promotion of Synthetic Intelligence Utilization by SMEs, a landmark proposal that seeks to present smaller firms each the proper and capability to combine AI into their operations.
The legislation requires the Minister of SMEs and Startups (MSS) to determine a “Fundamental Plan for SME AI Utilization” each three years, making a long-term coverage cycle that ensures continuity in AI adoption help. It additionally offers for the institution of a devoted coverage council and specialised company liable for implementing consulting applications, funding mechanisms, and expertise coaching initiatives.
Business leaders view this as the primary authorized basis for AI transformation (AX) throughout the SME ecosystem — a step designed to show short-term innovation grants right into a structured, nationwide help system.
Bridging Korea’s Knowledge Hole for the AI Transformation Technique
Whereas AI has turn out to be important throughout industries, Korean SMEs nonetheless face limitations in accessing coaching information, securing AI experience, and navigating complicated rules. Many lack the assets that giant firms use to coach machine-learning fashions or purchase high-quality datasets.
The invoice addresses this hole by means of a Textual content and Knowledge Mining (TDM) exception clause, which might enable firms to legally use publicly out there information for AI studying and evaluation with out concern of copyright disputes. This provision mirrors authorized frameworks already adopted by Japan, the European Union, and Singapore, which exempt AI studying from sure copyright limitations to speed up innovation.
Business associations argue that with out such reform, Korean SMEs danger falling behind within the worldwide AI race.
Business Requires Authorized Readability and Truthful AI Entry
The Innobiz Affiliation, representing modern SMEs, welcomed the invoice in a public assertion on November 3, saying:
“To advance AI innovation whereas defending creators’ rights, Korea urgently must introduce a TDM exception. This isn’t solely about expertise however about constructing the authorized and moral basis for the AI period.”
The group additionally highlighted the rise of “Bodily AI” — programs that merge AI with robots, sensors, and IoT units to investigate and optimize manufacturing processes in actual time.
A spokesperson defined:
“Knowledge entry is essential for small producers. With out it, they can’t apply AI to enhance productiveness or scale back defects.”
These feedback align with ongoing MSS initiatives connecting startups with producers underneath the AI Transformation (AX) program, suggesting that the brand new laws may give such applications a sustainable coverage base moderately than momentary funding cycles.
The Coverage Spine of Korea’s AI Transformation
Though the AI Utilization Promotion Act is just not a part of the MSS’s startup–manufacturing partnership program itself, it capabilities as its institutional complement.
The MSS’s AX initiative promotes sensible AI adoption by means of business partnerships, whereas this invoice offers authorized and administrative infrastructure to increase these efforts throughout the economic system.
If enacted, the act may:
- Allow public–personal information sharing for AI mannequin coaching;
- Simplify regulatory processes by means of a brand new Regulatory Jury Committee of consultants and residents;
- Defend proactive public officers underneath a protected harbor clause;
- Set up regional AI diffusion hubs to cut back the expertise hole amongst provinces.
These provisions instantly handle long-standing issues that AI adoption in Korea has been concentrated in massive companies, leaving SMEs — which account for about 99% of Korean companies — with out ample coverage instruments to compete globally.
Towards a Truthful and Scalable AI Financial system
Consultant Kim Dong-ah, who spearheaded the invoice, emphasised the broader stakes:
“If SMEs fall behind within the AI period, the spine of the Korean economic system will collapse. We intention to create a robust and truthful help system that helps small and medium enterprises actively undertake and use AI.”
For Korea’s startup ecosystem, the proposed legislation marks a transition from experimentation to governance. It represents the state’s recognition that AI is just not solely a expertise however a nationwide infrastructure — one which have to be inclusive, clear, and scalable.
As the worldwide race for AI competitiveness intensifies, this authorized step may outline how Korea positions its innovation economic system inside Asia’s rising AI transformation panorama.
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