In a landmark move for global AI-generated advertising regulation, the South Korean government has announced it will implement a mandatory labeling system for all advertisements created using artificial intelligence. The new rules, set to take effect in early 2026, are a direct response to a growing wave of deceptive digital content, including deepfake videos of celebrities and fabricated expert endorsements that have flooded social media platforms like Instagram, TikTok, and YouTube.
This decisive action aims to bolster consumer trust and bring greater transparency to the digital advertising landscape. The announcement was made following a policy meeting led by Prime Minister Kim Min-seok, who emphasized the critical need to "minimize the side effects of new technologies" as the nation fully enters the "AI era." The government's focus is on protecting consumers, particularly older citizens who may find it difficult to distinguish between authentic and AI-generated content.
A New Framework for AI-Generated Advertising Regulation
The new regulations will require amendments to South Korea's telecommunications act, placing clear responsibility on both advertisers and the platforms hosting the content. Lee Dong-hoon, a key policy director, stated that anyone creating or posting AI-generated content must clearly label it as such, and that tampering with these labels will be prohibited. This new layer of accountability is a significant step in establishing clear AI advertising compliance standards, particularly as organizations worldwide grapple with evolving AI laws for businesses.
The proliferation of misleading AI-generated ads has become a serious issue. According to the Food and Drug Safety Ministry, over 96,700 illegal online ads for food and pharmaceutical products were identified in 2024, a substantial increase from approximately 59,000 in 2023. This proactive stance on AI-generated advertising regulation is part of a broader global effort to grapple with the ethical and legal challenges posed by synthetic media. Similar concerns have prompted action in other jurisdictions, with New York recently enacting legislation requiring disclosure of AI-generated synthetic performers in advertising.
Addressing the Risks of Deepfake Advertising
The rise of deepfake advertising is a central concern for regulators. The ability to create highly realistic but entirely fabricated video and audio of public figures has opened the door to a new kind of misinformation. This is not just a matter of commercial deception; the same technology has been used for more malicious purposes, including the creation of non-consensual pornographic material and political disinformation. For businesses and agencies, understanding the nuances of regulating artificial intelligence is no longer optional, but a core component of responsible innovation.
To enforce these new rules, the government plans to introduce significant punitive measures, including fines that could be as high as five times the amount of damages incurred. Additionally, a new, expedited 24-hour review process will be established to remove harmful content quickly. These measures signal a robust commitment to creating a safer and more trustworthy digital environment, a goal that aligns with the principles of building AI Trust.
Balancing Innovation with Governance
While these regulations address the potential harms of AI, the South Korean government remains committed to fostering innovation in the field. President Lee Jae Myung has continued to advocate for aggressive investment in the nation's AI sector, particularly in the development of advanced semiconductors and true hyperscale AI models. This dual approach—promoting technological advancement while establishing strong ethical guardrails—is a model that many other nations are likely to watch closely. As international organizations work toward harmonized AI standards to reduce fragmented global rules, South Korea's proactive stance demonstrates how national regulation can set important precedents.
For companies operating in or marketing to South Korea, the new AI-generated advertising regulation will necessitate a thorough review of their advertising production workflows and compliance strategies. Implementing robust AI management systems will be essential to navigate this new regulatory landscape successfully. As AI becomes more integrated into our daily lives, the need for clear, consistent, and enforceable rules will only grow more urgent. South Korea's proactive stance is a clear indication that the era of unregulated AI-generated content is coming to an end.
