Government Launches Sweeping Crackdown on AI-Driven False Marketing (Image courtesy of Yonhap)
SEOUL, Dec. 11 (Korea Bizwire) — South Korea will introduce new regulations to curb the rapid spread of artificial intelligence–generated false and exaggerated advertising, including a mandatory labeling system for AI-produced content and punitive damages for malicious misinformation, government officials said Wednesday.
The package was approved at a national policy coordination meeting chaired by Prime Minister Kim Min-seok, following mounting concerns about deceptive promotions circulating online, particularly in food, pharmaceutical and cosmetics sectors. Officials say advances in generative AI have made it increasingly difficult for consumers to distinguish real content from fabricated claims, raising the risk of public harm.
President Lee Jae-myung previously ordered ministries to develop more fundamental safeguards after warning in October about the misuse of AI in deceptive advertising. Last month, the presidential chief of staff also instructed agencies to quickly block deepfake medical ads and strengthen emergency oversight mechanisms.
Mandatory AI Content Labels
Under the plan, the Broadcast Media Communications Commission will require creators who generate or edit content using AI to clearly label it as AI-produced. Platforms must monitor compliance, and users will be prohibited from removing or altering AI labels. The government will also publish guidelines to ensure transparent use of AI content. Related amendments to the Information and Communications Network Act are expected in the first quarter of next year.
AI-generated deceptive advertising case (Image provided by the Office of the Prime Minister)
Harsher Penalties and Faster Enforcement
The government will introduce punitive damages for individuals or influencers who knowingly spread harmful misinformation using AI, allowing courts to impose compensation of up to five times actual damages. Regulators will also raise fines under advertising law to increase deterrence and set clearer standards for policing ads that feature AI-generated “experts” recommending products.
The Ministry of Food and Drug Safety and the Korea Consumer Agency will deploy AI-based monitoring systems to detect suspicious promotional content more quickly.
Accelerated Review and Emergency Blocking
To prevent harmful ads from circulating widely, the Broadcast Media Communications Commission and its deliberation body will add food, pharmaceuticals and medical products to fast-track review categories, enabling decisions within 24 hours. A new emergency corrective order mechanism will allow regulators to request immediate removal of advertisements posing urgent risks even before formal deliberation concludes.
Government ministries plan to implement parts of the framework beginning early next year, with full enforcement targeted for the second half of 2025.
Prime Minister Kim said the measures aim to “minimize side effects of emerging technologies while establishing fair market rules appropriate for the AI era.”
Kevin Lee (kevinlee@koreabizwire.com)
