South Korea Fines OpenAI: Impact on Artificial Intelligence Company

The Personal Information Protection Commission (PIPC) of South Korea has fined OpenAI, the developer behind the text-based artificial intelligence application ChatGPT, for a breach involving users’ personal information.

According to a report from Yonhap, the Commission imposed a fine on OpenAI following a systemic error in March that resulted in the exposure of payment information for ChatGPT subscribers for 9 hours.

The Commission fined the company approximately $3,000 for failing to report the incident within 24 hours after the data of 687 South Korean citizens was compromised.

In September 2022, PIPC issued significant fines to tech giants Google and Meta, totaling $50 million and $22 million respectively, for tracking users’ online activities without consent and utilizing their data for targeted advertising, actions that were found to infringe on user privacy.

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