On December 10, 2025, at the 7th National Policy Coordination Meeting, the Korean government (the “Government”) finalized and announced the “Comprehensive Plan to Eradicate AI-Generated False or Exaggerated Advertisements” (the “Plan”). The Plan aims to establish a Government-wide response system to address the recent surge in so-called “AI-generated fake advertisements” that impersonate professionals, such as doctors, or misappropriate the likenesses of celebrities using generative AI and deepfake technology. The Plan seeks to do so by (i) proactively preventing the distribution of such advertisements, (ii) promptly blocking them once distributed, and (iii) strengthening financial sanctions against violators.
In particular, the Plan includes (i) requiring a person who creates, edits, and posts AI-generated content (“Direct Information Provider”) to label that their photos or videos were generated by AI, (ii) requiring platform operators to monitor whether Direct Information Providers comply with such labelling obligation, and (iii) amending the Act on Promotion of Information and Communications Network Utilization and Information Protection (the “Network Act”) to significantly reinforce regulations, including the introduction of punitive damages.
The key points of the Plan are as follows.
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Proactive Prevention of False or Exaggerated Advertisement: “AI-generated” Labeling Obligations for Direct Information Providers, Users, Portal and Platform Operators, and Establishment of Relevant Guidelines |
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By the first quarter of 2026, the Korea Media and Communications Commission (the “KMCC”) plans to amend the Network Act to (i) require Direct Information Providers, users, portal and platform operators to label content generated by AI, and (ii) impose administrative penalties on platform operators that violate their monitoring obligation, and on any person who removes or alters an “AI-generated” label. |
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Direct Information Providers: To label that the content is generated by AI when they directly create, edit, or post AI‑generated content.
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Users: To not arbitrarily remove or alter an “AI-generated” label that was added pursuant to the Network Act and the AI Basic Act.
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Portal and Platform Operators: To monitor whether Direct Information Providers and users have labeled their content as “AI-generated” (including by providing labeling methods and notice of labeling obligations).
If enacted, this amendment may impose obligations not only on AI business operators under the AI Basic Act, but also on Direct Information Providers, users, and portal and platform operators, including obligations to include an “AI-generated” label, prohibitions on removing or altering such labels, and duties to monitor compliance with these requirements.
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To ensure compliance with the AI Basic Act, which is scheduled to take effect in January 2026, the Ministry of Science and ICT plans to officially finalize and implement AI Transparency Guidelines to support AI business operators in fulfilling their transparency obligations, such as the requirement to notify or label deepfake content. |
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Prompt Blocking of False or Exaggerated Advertisements Once Distributed: Promoting Industry Self-Regulation and Enhancing the Effectiveness of the Government Blocking Measures |
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The Korea Media and Communications Standards Commission (the “KMCSC”) plans to expand its fast-track system, through which the Ministry of Food and Drug Safety (“MFDS”) may currently request the KMCSC to review illegal information regarding narcotics, to also cover food, pharmaceuticals, and cosmetics, and to introduce written (or electronic) reviews by amending the Act on the Establishment and Operation of Korea Media and Communications Standards Commission. |
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By amending the Network Act, the KMCC plans to establish procedures that will allow the KMCC to issue emergency corrective orders to platform operators even prior to the review by the KMCSC in case a relevant authority (e.g., MFDS, Korea Fair Trade Commission (“KFTC”), etc.) requests deletion of illegal information that is clearly determined to cause harm to the lives or property of Korean citizens. |
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Expansion of Sanctions and Enforcement Power: Introduction of Punitive Damages and Higher Administrative Fines |
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The KFTC and the MFDS announced that they will clarify the standards for determining the illegality of AI-generated advertisements by amending the Guidelines on Review of Labeling and Advertisements Regarding Recommendations and Endorsements. In particular, they stated that any advertisement that recommends a product using an AI-generated “virtual person” or “fake professional” will, unless clearly labeled as “AI-generated,” be regarded as “unfair labeling and advertising” or “consumer-misleading advertising,” and thus subject to sanctions. |
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The KFTC and the KMCC plan to amend the relevant laws to reduce incentives for unlawful conduct and strengthen monetary sanctions to ensure strict enforcement against violations. |
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The Network Act amendment will introduce punitive damages of up to five times the actual loss for the malicious distribution of false or manipulated information.
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In addition, administrative fines for false or exaggerated advertising under the Act on Fair Labeling and Advertising (the “Labeling and Advertising Act”) will be significantly increased from the current level of up to 2% of the revenues and, in case it is difficult to calculate the revenues, up to KRW 500 million.
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Implications |
