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The functional problem with setups like this is that it isn't clear how a site gets on or off the list. Cloudflare seems to be saying that a Korean Executive agency requested the block, so how would an affected site appeal that? What is the standard of proof to be blocked? If they file a court case that the site is informed of and can defend themselves in that is somewhat harder to abuse.
Cloudflare working against its own customers is interesting, in a way for international customers it could be helpful for them to avoid a full court case by just accepting being blocked in SK, assuming that's how it works. Or they could use a different content distributor.
Great points
It sounds like to many sites were they hide behind AI for support but legal action wise yeah what would one do?