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August 16.2025
3 Minutes Read

DeepSeek's Active Users Plunge: Privacy Concerns Threaten Its Future in South Korea

Close-up of DeepSeek app screen discussing privacy concerns.

The Rise and Fall of DeepSeek: A Brief Overview

DeepSeek, a Chinese generative artificial intelligence (AI) service, experienced a meteoric rise in popularity only to face a sharp decline due to escalating privacy concerns in South Korea. Launched as a free service, DeepSeek rapidly gained traction, amassing 1.2 million cumulative users within two weeks and boasting around 200,000 daily active users (DAU) at its peak. However, amidst reports of personal data leaks and excessive information collection, user trust plummeted, and the DAU has now dwindled to approximately 30,000.

The Factors Behind DeepSeek's Popularity

DeepSeek's initial success can be attributed to its impressive performance in Korean language recognition, speed in generating images and text, along with the allure of being freely available. Many early adopters praised the service, likening its efficiency to that of the paid version of its competitor, OpenAI's ChatGPT. However, this value proposition quickly dwindled as soon as the service was embroiled in privacy controversies.

Privacy Concerns Lead to User Exodus

The tipping point came when the Personal Information Protection Commission of South Korea imposed restrictions on new downloads of the app due to alarming reports of 'excessive information collection.' Users raised red flags regarding the amount of sensitive data collected by the service, from keyboard inputs to location and private messages. Despite DeepSeek’s attempts to amend its privacy policies, the vagueness surrounding data processing practices has only deepened the discontent among users. The situation is further exacerbated by the fact that user data is stored on Chinese servers, making it subject to the Chinese government's data regulations and posing risks for Korean users concerned about government access to their information.

The Implications for AI Development

This incident serves as a cautionary tale for AI developers concerning user trust and data privacy. As the market for generative AI continues to expand, service providers must prioritize transparency regarding data collection and user privacy. The backlash against DeepSeek is indicative of broader trends where consumers demand accountability and protection for their personal data in a digital ecosystem increasingly threatened by breaches and misuse of information.

Future of AI Services in South Korea

The future remains uncertain for DeepSeek in the Korean market. As the company works with legal advisors to establish a more clearly defined personal information processing policy, questions linger about whether existing users will return or whether new users will be willing to join a platform they perceive as unsafe. Moreover, with other AI services like ChatGPT continuing to dominate the market, DeepSeek may struggle to recover lost ground if these privacy concerns are not adequately addressed.

Closing Thoughts

As the world becomes more reliant on AI technologies, the importance of user privacy cannot be overstated. Companies must consistently align their operational practices with user expectations and regulatory frameworks to foster trust and ensure sustainable growth in this competitive industry. For those engaged in or considering utilizing AI services, prioritizing platforms with robust privacy measures and transparent data practices is crucial.

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How DeepSeek Disrupted the AI Chatbot Landscape in 2025

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