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Murky rules, bubble fears cloud South Korea's reignited AI push

By Choonsik Yoo ( December 26, 2025, 00:56 GMT | Comment) -- The administration of South Korean President Lee Jae Myung’s early AI overhaul has succeeded in reviving momentum after some delay due to domestic politics, but his AI policy agenda now faces tougher regulatory and public-confidence tests. Businesses warn that unclear obligations under the AI Basic Act and a rushed implementation schedule risk slowing adoption, in addition to a potential dent on public trust after a series of digital-security incidents. Global market volatility and rising concerns about an AI bubble could also undermine South Korea’s investment push and expose the economy to sharper shocks.After spending its first six months tearing down and rebuilding a fragmented national artificial intelligence strategy, South Korean President Lee Jae Myung’s administration has positioned itself to credibly claim a return to the global AI race. Yet its early overhaul now raises a deeper question: can it convert an administrative sprint into durable competitiveness amid tightening domestic and global pressures?...

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