OpenAI to introduce local data-storing feature in Korea

OpenAI announced Thursday that it will introduce a "data residency" feature in Korea, ChatGPT users to store their data within the country rather than transferring it overseas.

OpenAI and ChatGPT logos are seen in this illustration taken on Feb. 3, 2023. [REUTERS/YONHAP]

OpenAI announced Thursday that it will introduce a "data residency" feature in Korea, ChatGPT users to store their data within the country rather than transferring it overseas.

The new feature applies to ChatGPT Enterprise, the subscription service for businesses; ChatGPT Edu, a subscription plan for educational institutions; and the company’s developer-facing API platform.

With this feature, users of ChatGPT Enterprise or Edu can ensure that conversations with ChatGPT, records of custom GPT usage, user prompts and uploaded files — including text and images — are stored and managed within Korea. Developers using OpenAI’s API platform can also designate that data be stored only within a selected country.

Data residency refers to the physical location where personal data is stored. For example, if a U.S.-based company stores user data on a server located in Korea, the data’s residency is considered to be in Korea.

To implement this feature, OpenAI said it will rent server space from existing data centers in Korea. The data residency option will also be made available simultaneously in Japan, India and Singapore. OpenAI previously rolled out a similar feature in the European Union in February.

Industry observers see the move as part of OpenAI’s broader effort to expand into Korea’s enterprise and public sector markets, where data privacy and security are key concerns. The feature is also seen as laying the groundwork for a stronger local presence, including the potential establishment of a Korean branch.

“This update will allow Korean companies and institutions to store and manage content within Korea,” an OpenAI spokesperson said. “It’s a measure to help users maintain stronger control over their data and address concerns about overseas data transfers.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY KIM NAM-YOUNG [lim.jeongwon@joongang.co.kr]