#19 Asia AI Policy Monitor
China GenAI coding security, DeepSeek bans, South Korea and India copyright AI suits, Deepfakes scams in Indonesia, Digital Trade Agreements expand
Thanks for reading this month’s newsletter along with over 1,700 other AI policy professionals across multiple platforms to understand the latest regulations affecting the AI industry in the Asia-Pacific region.
Do not hesitate to contact our editors if we missed any news on Asia’s AI policy at seth@apacgates.com!
Intellectual Property
South Korean broadcasters brought a lawsuit against Naver for copyright infringement in training its genAI tools.
"In response to our request for disclosure of the source and content of AI learning data and the data acquisition path, Naver refused to do so," the association’s task force said. "Starting with Naver, we will file lawsuits against other big tech companies that use news data without permission and take a strong stance."
In an on-going copyright case in India on AI training and infringement, additional plaintiffs try to join the action.
Separately, digital news units of India's largest media groups including the Indian Express and the Hindustan Times have sought to join the lawsuit by arguing ChatGPT was scraping content from their news websites to store and reproduce their work for its users.
Finance
India’s Reserve Bank published a set up a committee to establish a Framework for Responsible and Ethical Enabled AI. The remit covers the following:
To assess the current level of adoption of AI in financial services, globally and in India. (ii) To review regulatory and supervisory approaches on AI with focus on financial sector globally. (iii) To identify potential risks associated with AI, if any and recommend an evaluation, mitigation and monitoring framework and consequent compliance requirements for financial institutions, including banks, NBFCs, FinTechs, PSOs, etc. (iv) To recommend a framework including governance aspects for responsible, ethical adoption of AI models / applications in the Indian financial sector. (v) Any other matter related to AI in the Indian financial sector.
The India Securities and Exchange Board also published guidance for intermediaries on AI:
to require persons regulated by SEBI (including MIIs, registered intermediaries, AMCs, managers of pooled invest ment vehicles) who use Artificial Intelligence tools, either designed by them or procured from third party technology service providers, to take full responsibility for their use of such tools. The Regulations shall be applicable irrespective of the scale and scenario of adoption of such tools for conducting its business and servicing its investors. Such SEBI regulated persons shall be solely responsible for
14.1.1 the privacy, security and integrity of investors’ and stakeholders’ data including data maintained by it in a fiduciary capacity, throughout the processes involved;
14.1.2 the output arising from the usage of such tools and techniques it relies upon or deals with; and
14.1.3 the compliance with applicable laws in force
Cybersecurity & Trust
New Zealand launched its Responsible AI Guidance for Public Service: Gen AI.
This guidance is underpinned by the following OECD AI principles:
Principle 1.1: Inclusive growth, sustainable development and well-being(external link)
Principle 1.2: Human rights and democratic values, including fairness and privacy (external link)
Principle 1.3: Transparency and explainability (external link)
Principle 1.4: Robustness, security and safety (external link)
Deepfakes of Indonesian leaders are part of a financial scam network.
Indonesia, with its high internet penetration rates, rapid adoption of digital financial services, and significant digital and financial literacy gaps, has emerged as a fertile ground for online fraud and scams. However, regulatory frameworks are struggling to keep pace in terms of providing clear and consistent definitions, which carries several implications for legal and regulatory understanding…
Overall, it is crucial for Indonesia to establish clear definitions as a foundation for future actions. The current conflation and fragmentation in the country’s definitions of fraud and scams create challenges in terms of operational clarity and institutional coordination. By establishing precise definitions, regulators can adopt a more comprehensive approach to addressing online fraud in Indonesia, particularly social engineering scams that exploit the widespread lack of digital and financial literacy.
Cybersecurity agencies from Australia, Canada, UK and the US authored a report on credentials for genAI content.
The widespread availability of AI and machine learning tools, including generative models and deepfake technologies, makes it possible for anyone to convincingly create and/or modify media with minimal effort, low cost, and increased realism. This rapid evolution poses a significant challenge for traditional verification methods, which may struggle to keep up with the growing sophistication and scale of these technologies. As a result, the accuracy and effectiveness of verification methods are increasingly under strain, leaving consumers more vulnerable to misinformation and influence operations. The abuse of AI-generated media [1] also represents a significant cyber threat to organizations, including through impersonation of corporate officers and the use of fraudulent communications to enable access to an organization’s networks, communications, and sensitive information.
Taiwan bans use of China’s DeepSeek in public sector for national security concerns.
Taiwan’s Ministry of Digital Affairs (MODA) announced on January 31 that Taiwan’s public sector workers would be banned from using DeepSeek, a recently released Chinese artificial intelligence (AI) model, due to concerns over potential data leaks to the Chinese government.
Australia also banned China’s DeepSeek on government devices.
The Secretary of the Department of Home Affairs issued a mandatory direction for all government entities to "prevent the use or installation of DeepSeek products, applications and web services and where found remove all existing instances of DeepSeek products, applications and web services from all Australian Government systems and devices," the statement said.
India bans DeepSeek on government devices also.
India’s finance ministry has also asked its employees to avoid using any AI tools, like DeepSeek and ChatGPT for official purposes, and have cited the risk to confidential government documents and data.
South Korea also bans the app on gov’t devices.
South Korea’s National Intelligence Service (NIS) warned that DeepSeek grants advertisers unlimited access to user data and stores that data on Chinese servers, per Reuters.
"Unlike other generative AI services, it has been confirmed that chat records are transferable, as it includes a function to collect keyboard input patterns that can identify individuals and communicate with Chinese companies' servers," the NIS said. It added that Chinese law allows authorities to access such data upon request.
The China National Information Security Standardisation Technical Committee (TC260) opened a consultation on the draft Cybersecurity Standard Practice Guidelines – Coding Rules for Service Providers of Artificial Intelligence (AI) Generated Synthetic Content Identification.
China’s TC260 issued public consultation on draft AI Safety Standards.
Military
Japanese Former Defense Minister responds to the political bias reflected in the recently release DeepSeek from China.
tsunori Onodera, a former Japanese defense minister, said DeepSeek's chatbot responded that the Senkaku Islands in the East China Sea is China's inherent territory according to history and international law, when asked about the islets, at the center of diplomatic friction between Japan and China.
Iran deploys AI-enabled missiles during training exercises.
Tangsiri also said that Iran was producing cruise missiles with ranges "exceeding 1,000 kilometres (621 miles) that are utilised with AI technology".
The deployment of the missiles comes months after remarks from Iran's supreme leader, Ayatollah Khamenei, urging the authorities to "master artificial intelligence".
In the News & Analysis
South Korea’s Ministry of Science and ICT conducted an assessment of the country’s AI ecosystem with industry players in light of DeepSeek announcements.
During the ministry meeting, LG AI Research head Bae Kyung-hoon revealed that LG’s high-performance Exaone 3.5 32B model, made public as an open-source model in December, cost only 7 billion won ($4.83 million) to develop — lower than the known development cost of $6 million for the DeepSeek V3 model…
To level the AI playing field, the government on Tuesday announced its plan to purchase 30,000 advanced Nvidia GPUs by 2026, securing 15,000 this year.
“If the government and private sectors work together to foster an AI ecosystem, we can achieve our own success amid fierce global competition,” Second Vice Minister of Science and ICT Kang Do-hyun said at Thursday’s meeting.
“The government plans to accelerate the establishment of a national AI computing center and will discuss detailed strategies for Korea’s advancement as an AI powerhouse at the upcoming national AI committee meeting later this month.”
Thailand attracts AI chip industry investment.
Thailand aims to have an initial draft of a strategic plan for its semiconductor sector ready in the next 90 days, keen to attract fresh investment amid U.S. President Donald Trump's renewed trade war with China.
Taiwan bolsters AI industry with pledges to boost computing power.
The government would intensify efforts to bolster its “Sovereign Artificial Intelligence [AI]” program by setting a goal of elevating the nation’s collective computing power in the public and private sectors to 1,200 peta floating points per second (petaflops) by 2029, the Executive Yuan said yesterday.
The goal was set to fulfill President William Lai’s (賴清德) vision of turning Taiwan into an “AI island.”
Sovereign AI refers to a nation’s capabilities to produce AI using its own infrastructure, data, workforce and business networks. One petaflop allows 1 trillion calculations per second.
Pakistan says it is too early to regulate AI, and considers options for National AI Policy.
The Ministry of Information Technology and Telecommunication has opposed the regulation of Artificial Intelligence (AI), saying that it would be too early to come up with a regulator for a technology that is emerging since the ecosystem is yet to be developed.
Indonesian minister calls on cooperation in developing AI regulations.
Deputy Minister of Communication and Digital Nezar Patria emphasized the importance of collaboration between various stakeholders in developing regulations on artificial intelligence (AI).
The government is opening up space for industry, academics, NGOs, and the wider community to contribute to the formulation of policies that will optimize the benefits of AI while mitigating the risks of utilizing AI technology.
India is OpenAI’s second largest market.
Altman met with India's IT Minister Ashwini Vaishnaw and discussed India's plan of creating a low-cost AI ecosystem. Altman lauded the country’s rapid AI adoption and growing ambitions.
Japanese leadership responds to China’s DeepSeek recent release.
Ishiba told a parliamentary session that the use of AI is critical in resolving issues such as low productivity confronting Japan. But he also acknowledged misinformation and disinformation as risks stemming from the greater use of the technology.
"We need to create a basic plan on how we can promote research and development as well as the use of AI in a safe and secure way," Ishiba told the Budget Committee of the House of Representatives.
India sets up AI Safety Institute.
The Hon’ble Minister has announced the setting up of IndiaAI Safety Institute under the Safe and Trusted Pillar of the IndiaAI Mission to address AI risks & Safety Challenges.
The IndiaAI Safety Institute will work with all relevant stakeholders, including academia, startups, industry and government ministries/departments, towards ensuring safety, security and trust in AI. The Institute will advance indigenous research and development, based on Indian datasets and contextualized to India’s social, economic, cultural, and linguistic diversity.
India’s PM will co-chair the Paris AI Action Summit in February.
France is looking to build on the momentum generated by the UK and South Korea, which had organised the previous two summits in November 2023 and May 2024, respectively.
Multilateral
Japan and Thailand sign an MOU on cooperation including AI.
On this occasion, both parties discussed important issues, such as cooperation activities under the Memorandum of Cooperation (MOC) between DE and Japan's MIC, covering issues of information, communication, and digital technology, as well as new opportunities to cope with current technological changes, such as 3D Printing, AI, promoting startups in the game and entertainment industries, and developing new digital skills for personnel.
India and Indonesia sign MOU on digital cooperation.
The agreement covers the development of new technologies, including artificial intelligence (AI) and the Internet of Things (IoT), the development of public digital infrastructure such as digital identity, and improving human resource skills in the information technology sector.
Singapore responds to DeepSeek access to chips banned by US export controls.
According to Nvidia’s recent quarterly statement, Singapore accounts for about 22% of its revenue. However, Nvidia has stated in its regulatory filing that “most shipments associated with Singapore revenue were to locations other than Singapore, and shipments to Singapore were insignificant”.
The UK and Japan issued a statement on Digital Partnership with provisions on AI and Compute.
AI and compute
The UK and Japan’s AI Safety Institutes have built a strong and enduring relationship that has facilitated knowledge exchange on AI safety. Ahead of the Network of AI Safety Institutes launch event in November 2024, Both Participants participated in the first global joint safety testing exercise, a milestone moment of international technical collaboration. In the coming year, Both Participants will continue to scope opportunities for collaboration including on testing and the development of international norms that promote the safe and trustworthy development and deployment of Frontier AI models…
Both Participants look forward to supporting each other’s strategies and sharing expertise where mutually beneficial. The UK’s AI Opportunity Action Plan (published January 2025) outlines how the UK Government will accelerate the adoption of safe and effective AI across all parts of the UK. Building on collaboration in 2024, Both Participants will continue to scope opportunities to pursue bilateral R&D in AI and compute, and share infrastructure and expertise.
Costa Rica joins New Zealand, South Korea, Chile and Singapore in the Digital Economy Partnership Agreement (DEPA), which includes provisions on AI and algorithmic protections and data sharing.
Article 8.2: Artificial Intelligence 1. The Parties recognise that the use and adoption of Artificial Intelligence (AI) technologies have grown increasingly widespread in the digital economy. 2. The Parties recognise the economic and social importance of developing ethical and governance frameworks for the trusted, safe and responsible use of AI technologies. In view of the cross-border nature of the digital economy, the Parties further acknowledge the benefits of developing mutual understanding and ultimately ensuring that such frameworks are internationally aligned, in order to facilitate, as far as possible, the adoption and use of AI technologies across the Parties’ respective jurisdictions. 3. To this end, the Parties shall endeavour to promote the adoption of ethical and governance frameworks that support the trusted, safe and responsible use of AI technologies (AI Governance Frameworks). 4. In adopting AI Governance Frameworks, the Parties shall endeavour to take into consideration internationally recognised princip
Environment
Japan’s energy sector was bracing for massive increases in energy usage to compete on energy intense AI chip usage. The headline making release of China’s DeepSeek, which trained on a fraction of the energy has revealed some potential route around this energy crunch.
In late December, the government released a draft of its basic energy plan, a major policy document reviewed about every three years, projecting electricity generation would rise between 10-20% by 2040 and citing those factors.
Governance
Taiwan launches AI Evaluation Center, and publishes AI in the Public Sector guidance.
Taiwan’s AI Evaluation Center (AIEC) was established to assess AI applications, referencing international standards such as:
ISO standards, US NIST AI Risk Management Framework, EU Trustworthy AI
Evaluation criteria: 1. Fairness – AI must not exhibit bias against individuals or groups. 2. Reliability – AI must be stable under unexpected conditions. 3. Privacy – AI must protect personal data.4. Security – AI must be resilient to cyber threats. 5. Accuracy – AI outputs must be precise and reliable.
Advocacy
Pakistan has an open consultation on its draft National AI Policy ongoing.
China’s TC260 issued public consultation on draft AI Safety Standards until 26 February.
China’s TC260 has a public consultation on the draft Cybersecurity Coding Rules for Service Providers of GenAI Content until 5 February 2025.
[The Rules] provide coding rules for synthesis service providers and content dissemination service providers, and guide them in carrying out the implicit identification of file metadata of artificial intelligence generated synthetic content…
Australia’s Treasury opened a public comment period until February 15 on digital competition.
This proposal paper seeks information and views to inform policy development on a proposed new digital competition regime with upfront rules to promote effective competition in digital platform markets by addressing anti-competitive conduct and conduct that creates barriers to entry or exploits the market power of certain digital platforms
New Zealand’s Privacy Commissioner issued public consultation on its draft Biometric Processing Privacy Code of Practice. The Code includes 12 prospective rules until 14 March.
The Asia AI Policy Monitor is the monthly newsletter for Digital Governance Asia, a non-profit organization with staff in Taipei and Seattle. If you are interested in contributing news, analysis, or participating in advocacy to promote Asia’s rights-promoting innovation in AI, please reach out to our secretariat staff at APAC GATES or Seth Hays at seth@apacgates.com.