More than 22,000 cases of suspected deceptive advertising on social media were identified in South Korea last year. (Image courtesy of Kobiz Media)
SEJONG, South Korea, March 17 (Korea Bizwire) — More than 22,000 cases of suspected deceptive advertising on social media were identified in South Korea last year, as authorities intensified efforts to regulate undisclosed sponsored content.
The Fair Trade Commission (FTC) released its 2024 Social Media Deceptive Advertising Monitoring Report on Sunday, revealing that 22,011 posts across major platforms—including Instagram, Naver Blog, YouTube, and TikTok—were flagged for potential violations.
Under South Korea’s Labeling and Advertising Act, influencers and content creators must clearly disclose any economic incentives received from advertisers—such as free products or monetary compensation—to prevent misleading consumers. Posts that fail to make such disclosures or disguise ads as organic user reviews are classified as “backdoor advertising.”
Instagram Leads in Violations
Instagram accounted for the highest number of flagged posts, with 10,195 cases, followed by Naver Blog (9,423 cases) and YouTube (1,409 cases).
The most common violation (39.4% of cases) involved disclosures that were buried in captions, expandable sections, or comment sections, making them difficult to spot. Meanwhile, 26.5% of cases failed to include any disclosure at all, and 17.3% used small fonts or faded text, further obscuring the ad nature of the post.
By industry, the most frequently cited categories were:
- Health and hygiene products (5,200 cases, 23.6%)
- Clothing, textiles, and personal accessories (4,774 cases, 21.7%)
- Food and beverages (2,492 cases, 11.3%)
Rise of Deceptive Ads in Short-Form Videos
The FTC noted a sharp increase in undisclosed ads within short-form video content, a fast-growing advertising medium. Suspected violations were detected in:
- Instagram Reels (1,736 cases)
- YouTube Shorts (1,209 cases)
- TikTok (736 cases)
Authorities believe the rise in violations reflects both the growing reliance on short-form content for marketing and a lack of awareness among creators and advertisers regarding disclosure obligations.
Enforcement and Future Plans
Following regulatory warnings, 26,033 posts—including both flagged content and voluntarily corrected posts—were revised to comply with disclosure guidelines.
Since launching its monitoring initiative in 2021, the FTC has steadily expanded its oversight. This year, the agency will intensify monitoring of short-form videos and “influencer cards,” a payment method where influencers receive cashback or other financial incentives for purchases, which could constitute hidden advertising.
“We will continue our efforts to ensure transparency in consumer information and support rational purchasing decisions,” an FTC official said. “Additionally, we plan to release updated guidelines reflecting recent regulatory changes later this year.”
With deceptive advertising becoming increasingly sophisticated, South Korean regulators are stepping up efforts to maintain consumer trust in digital marketing.
M. H. Lee (mhlee@koreabizwire.com)
