SEOUL – South Korea is stepping up its regulatory response to the rapid proliferation of Artificial Intelligence (AI) in advertising, announcing new rules that will require advertisers to clearly label any content created or significantly edited using AI technologies.
The move is a direct effort to protect consumers from a surge in deceptive promotions, especially those featuring fabricated experts or deep-faked celebrities.
Following a policy meeting, officials in Seoul stated the new measures are essential to curb the “disruption of market order” caused by these increasingly realistic yet fabricated advertisements.
Key Details of the New Regulation
- Mandatory Labeling: Anyone who creates, edits, and posts AI-generated photos or videos online will be required to label the content as “AI-made” or “AI-generated product.”
- Tampering Prohibition: Users of the platforms will be explicitly prohibited from removing or tampering with these labels.
- Platform Responsibility: Companies operating social media and online platforms will be held responsible for ensuring advertisers comply with the new labeling rules.
- Stiff Penalties: The government plans to ramp up monitoring, screen and remove problematic ads, and impose significant punitive fines for violations. Penalties may include being held liable for damages up to five times the consumer losses incurred.
- Targeting Deceptive Tactics: The rules specifically target unfair advertising practices, such as using virtual doctors or professors, created by AI, to recommend food, pharmaceutical, or cosmetic products without disclosing their non-existence.
- Implementation Timeline: The government plans to revise the Telecommunications Act and other related laws, aiming for the new labeling requirements and strengthened monitoring to take effect in early 2026.
The legislation is a response to the growing difficulty in monitoring and detecting false ads. South Korean authorities have noted a concerning trend of AI-fueled fake advertisements—ranging from weight-loss pills to illegal gambling sites—flooding platforms like YouTube and Facebook, posing a particular risk to older citizens who may struggle to distinguish AI content.
Impact on the Digital Advertising Landscape
The new mandate signals a major shift toward greater transparency in the digital ecosystem. While generative AI offers advertisers unprecedented creative possibilities and efficiency, the lack of disclosure has eroded consumer trust. Research suggests that when consumers are aware that content is AI-generated, they often view it less favorably than human-made content, highlighting the importance of clear labeling.
By placing the onus on content creators, advertisers, and the platform operators themselves, South Korea is establishing a comprehensive regulatory framework that covers the entire advertising chain.
This proactive measure positions South Korea as a leader in tackling the ethical and consumer protection challenges posed by the rapid advancements in generative AI technology.
The focus now shifts to how tech companies and advertisers will adapt their workflows to ensure compliance and how effectively the new laws will be enforced once they take effect.
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