Cloud/AI Use and Regulations on the Protection of National Core Technologies
2026.03.25.
One of the most frequently asked questions from multinational companies is whether their Korean subsidiaries may use the same cloud and AI tools deployed by their global headquarters. While this may appear to be a natural choice from an operational efficiency standpoint, Korean regulations on “national core technologies (NCTs)” complicates matters. The Korean Act on Prevention on Divulgence and Protection of Industrial Technology (the “Act”) designates certain key technologies as NCTs and mandates strict security measures. The Act also requires government permission when “exporting” NCTs.
In April 2025, the Korean government released the Security Management Guidelines for the Use of Cloud Computing Services for National Core Technologies (the “Guidelines”), which provides guidance on cloud and AI use for companies in possession of NCTs. In this newsletter, we highlight three key considerations for in-house legal and operational teams at multinational companies:
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