South Korea has introduced a comprehensive set of artificial intelligence (AI) regulations, described as the world's first of its kind, to enhance trust and safety in the industry. The new Basic Law on Artificial Intelligence aims to position South Korea as a leader in AI, contrasting with the EU's phased AI Act and the US's more lenient regulatory stance. However, startups express concerns that compliance could impede their growth, citing vague legal language and potential regulatory risks. The legislation, which follows extensive consultations, provides a one-year grace period before imposing administrative fines for non-compliance. Penalties include fines up to 30 million won ($20,400) for failing to label generative AI. Jeong Joo-yeon from the Startup Alliance highlighted the challenges startups face in navigating these regulations, potentially defaulting to overly cautious strategies to avoid penalties.