ALB OCTOBER 2024 (ASIA EDITION)

12 Asian Legal Business | October 2024 Technology dialogues, including ongoing efforts to harmonise technological growth with societal values and regulatory requirements. Japan and South Korea are taking distinct yet parallel paths in areas such as data privacy, artificial intelligence, and platform governance. Despite their unique approaches, both countries are moving towards more structured regulatory frameworks, particularly in data and AI governance. As they navigate this complex terrain, their decisions are poised to have far-reaching implications for the global tech industry, potentially influencing regulatory trends worldwide. Regulatory landscape Japan and South Korea have established comprehensive regulatory frameworks, each with its distinct characteristics. Japan’s Act on the Protection of Personal Information (APPI) and the Telecommunications Business Act (TBA), which can be generally applied to data privacy issues regardless of industry sector, are the main laws that govern technology companies. The Act on Prohibition of Private Monopolisation and Maintenance of Fair Trade; and the Anti-Monopoly Act (AMA) govern antitrust tech issues. South Korea’s structure comprises The Personal Information Protection Act (PIPA), renowned for its stringent privacy protections, The Network Act, overseeing online content and cybersecurity, and The Telecommunications Business Act, regulating telecommunications services. In the realm of artificial intelligence, both nations have adopted cautious approaches. Japan has implemented a soft law approach based on nonenforceable guidelines and encourages businesses to take voluntary measures to deal with the risks that will or may arise through or as a result of AI use. However, the Japanese government may be changing this approach slightly, says Noriya Ishikawa, a partner at Nishimura & Asahi. “It is considering regulating providers of generative AI that are or reach a certain scale, via hard law, in order to solve certain problems that may arise due to the use of generative AI, for example, the dissemination of false information and misinformation,” Ishikawa says. A first meeting of a newly constituted AI governance panel, led by thenPrime Minister Fumio Kishida, in August called for the study of legal restrictions based on four basic principles: ensuring both the security and competitiveness of AI; creating a system flexible enough to respond to technological changes; complying with international guidelines; and proper procurement and use of AI by the government. In Asia’s original tech powerhouses Tokyo and Seoul, a new chapter in technological governance is unfolding. As both nations stride into a new era of tech governance, they face the challenge of fostering innovation while addressing the complex issues that arise from rapid technological advancement. Conversations between ambitious entrepreneurs and cautious policymakers reflect broader national A digital balance Japan and South Korea, long considered at the forefront of Asian technological innovation, are now crafting intricate strategies to balance digital progress with regulatory oversight. By Nimitt Dixit • Japan and Korea crafting distinct tech regulation strategies • Asian tech policies potentially influencing global regulatory trends • Companies need to balance innovation with complex compliance challenges

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