Implications of the EU AI Act for South Korea’s Social Security System

Abstract

AI’s rapid advancement is making a far-reaching impact. Governments worldwide are seeking regulations to maximize AI’s benefits while minimizing its risks. Enacted in 2024, the EU AI Act is the most encompassing transnational legal framework to date concerning AI use. It regulates AI use in four areas, classified by their respective risk levels. Within the field of social security, the Act entirely prohibits AI-based social scoring, labeling it as an “unacceptable” and highly harmful risk. However, as administering social security inherently involves some form of social scoring, disputes are likely as the law phases into effect. The use of AI in “essential private and public services,” such as social welfare programs, is classified as “high risk,” just below the “unacceptable” category, and is subject to strict regulations. Meanwhile, Korea’s AI Framework Act, enacted in December 2024, does not address in any substantial way AI use in the area of social security. Given that AI technology is already in use in the field of social security, urgent policy action is necessary to address the associated challenges.