Revised AI Basic Act Takes Effect Today... Mandatory Generative AI Labeling Begins in Earnest

Detailed High-Impact AI Management System
Support for Usage Costs for Vulnerable Groups, Priority Public Sector Adoption, and More

The revision of the so-called "AI Basic Act," officially known as the "Framework Act on Fostering and Establishing a Trust-based Environment for Artificial Intelligence (AI)," comes into effect on July 21, 2026. This amendment provides a legal basis for expanding AI service procurement by the public sector and supporting the use of AI for vulnerable groups and science and engineering talents.

The follow-up amendment to the AI Basic Act details the obligations for labeling generative AI and specifies the management system for high-impact AI. It also includes provisions such as ▲ giving priority consideration to AI products and services in public procurement ▲ supporting the costs of using AI products and services ▲ improving accessibility for AI-vulnerable groups ▲ supporting AI startups through venture investment mother funds.

The AI Basic Act was first proposed in Korea’s National Assembly in July 2020. After more than four years of deliberation, it passed the plenary session of the National Assembly in December 2024 and was enacted in January last year. The Korean AI Basic Act is the second AI framework law in the world, following the European Union's AI Act.

This law went into full effect on January 22, 2025, with major provisions including the establishment of a national AI governance system, support for fostering the AI industry, and the creation of a framework for trust and safety.

With the implementation of the latest amendment, a new public demand creation system will require national and local governments to prioritize AI products and services when procuring products and services necessary for their work. This will allow the public sector to proactively adopt newly launched AI products and services and effectively serve as a test bed for them.

To ensure preferential application in public procurement, the Minister of Science and ICT will introduce an "AI Product and Service Confirmation System" to technically verify AI utilization. Applications for AI product and service confirmation can be made to the Korea Artificial Intelligence & Software Industry Association (KOSA). Once the confirmation is obtained, preferential treatment such as eased requirements for multiple supplier contracts and additional points in total cost contract eligibility evaluations can be received in the procurement market.

The amendment also establishes a basis for supporting the costs of using AI products and services. In addition to traditionally vulnerable groups such as people with disabilities and the elderly, women with career interruptions and job seekers who have difficulty accessing high-performance AI services will now also be included as AI-vulnerable groups eligible for support.

Furthermore, the procedures and requirements for establishing and operating AI research institutes have been clarified. The regulations specify that a diverse range of entities—including universities, enterprises, government-funded research institutes, and nonprofit corporations—can establish AI research institutes. The requirements for establishment include financial prerequisites, security measures, and the establishment of internal management regulations.

The amendment also legislates changes to the AI Strategy Committee, establishes support for AI startups using venture investment mother funds, provides for education, training, and employment support for professional AI talent, and sets criteria for providing public data as datasets for training AI.

The government plans to operate a guidance period of at least one year, during which it will gather industry feedback and develop guidelines specifying cases of high-impact AI applications and labeling methods for generative AI.

Bae Kyunghoon, Deputy Prime Minister and Minister of Science and ICT, stated, "With the enforcement of this amendment to the AI Basic Act, we expect public sector adoption and utilization of AI to accelerate, and public accessibility to AI to increase." He added, "In particular, the introduction of the AI Product and Service Confirmation System will allow the public sector to act as a catalyst for the rapid introduction of innovative AI technologies from the private sector and provide higher-quality public services to the people."

This content was produced with the assistance of AI translation services.