South Korea has accused Chinese artificial intelligence startup DeepSeek of sharing user data with ByteDance, the Beijing-based owner of TikTok, amid growing global concerns over the company's data practices.

The Personal Information Protection Commission (PIPC) confirmed that it had identified communication between DeepSeek and ByteDance but had yet to determine what data was transferred and to what extent, according to a statement given to Yonhap News Agency.

The revelation follows South Korea’s decision to remove DeepSeek from Apple and Google’s app stores over the weekend due to data protection concerns.

Before its removal, the AI chatbot had been downloaded over one million times in the country. While new downloads are no longer possible, existing users can continue to access DeepSeek via a web browser.

DeepSeek’s Rapid Rise and Privacy Concerns

DeepSeek gained global attention in January after claiming its AI model was trained at a fraction of the cost of U.S. competitors like OpenAI’s ChatGPT. The announcement triggered a sell-off in global tech stocks, reflecting the market's anticipation of new AI competition.

READ MORE: South Korea halts downloads of DeepSeek AI over data privacy concerns

However, multiple countries have since raised concerns about how DeepSeek handles user data.

In February, U.S. cybersecurity firm Security Scorecard published a report alleging that DeepSeek had “multiple direct references to ByteDance-owned services” and appeared to be deeply integrated with ByteDance’s analytics and performance monitoring infrastructure.

The report further suggested that user behavior and device metadata were likely being sent to ByteDance servers, with some data transmissions linked to Chinese state-owned entities.

South Korea Joins Growing List of Countries Restricting DeepSeek

South Korea has now followed Australia, Taiwan, and several other countries in banning DeepSeek from government devices due to privacy risks.

The PIPC stated that DeepSeek had failed to comply with South Korean privacy laws and cited concerns over third-party data transfers and a lack of transparency in the company’s privacy policies.

Despite ongoing investigations, DeepSeek is cooperating with South Korean regulators and has acknowledged shortcomings in its compliance with local laws. However, authorities have urged users to "exercise caution and avoid entering personal information into the chatbot."

ByteDance and China’s Data Privacy Laws

The latest controversy has reignited fears about Chinese companies' data-sharing practices, particularly in the wake of China’s National Intelligence Law, which critics argue allows government access to private data from domestic firms.

While ByteDance insists it is owned by a mix of global investors and is not controlled by the Chinese government, concerns over potential data transfers to Beijing have led to mounting scrutiny worldwide.

In the United States, national security concerns over data privacy contributed to the Supreme Court upholding a ban on TikTok. However, the ruling is on hold until April 5, as President Donald Trump seeks to negotiate a resolution.

As scrutiny over DeepSeek’s data-sharing practices intensifies, more countries may follow South Korea in restricting or banning the AI service, adding further pressure on the rapidly growing Chinese AI sector.

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