Warden Watch

Republic of Korea: Framework Act on the Development of Artificial Intelligence and the Creation of a Foundation for Trust (Act No. 20676)

Republic of KoreaLegislationIn force

The Framework Act on the Development of Artificial Intelligence and Establishment of Trust (AI Basic Act) establishes a legal framework to govern artificial intelligence across South Korea. Enacted to balance technological innovation with human rights and safety, the law imposes explicit transparency, safety, and operational duties on organizations that develop, supply, or utilize AI technologies. Applicable extraterritorially to overseas operations impacting South Korean users or markets, it introduces specific categories including high-impact AI and generative AI. High-impact AI encompasses automated tools utilized in critical domains, explicitly including hiring, employment screening, and personnel evaluation. Organizations leveraging high-impact AI must establish comprehensive risk management procedures, maintain system documentation, support human oversight, and provide meaningful explanations of automated outcomes.

Impact

What this means for HR and vendors

HR and recruitment teams

HR and recruitment teams using AI for hiring, resume screening, or employment evaluations must prepare for enhanced operational transparency and oversight under high-impact AI requirements. Organizations should ensure that job candidates and employees receive advance notice prior to deploying automated evaluation tools and can access clear explanations regarding system criteria and outcomes. HR teams may need to establish internal protocols for human oversight, maintain complete lifecycle risk documentation, and conduct pre-deployment evaluations to prevent adverse impacts on candidates and protected or vulnerable groups.

HR technology vendors

HR technology providers supplying AI-driven recruitment, screening, or talent management software into the South Korean market face heightened transparency and product governance standards. Vendors must prepare technical documentation, explain training data parameters, and ensure their systems facilitate deployer compliance with human supervision and operational risk mitigation duties. Foreign providers lacking a local business address must designate a qualified domestic representative in South Korea if statutory user or revenue thresholds are met.

Key obligations

What organizations need to do

Practical obligation briefings focused on what the requirement is, who it applies to, when it applies and what teams should consider doing.

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