South Korea Mandates AI Ad Labeling Amid Surge in Deepfake Deception

South Korea is moving to address the surge of deceptive promotions created using artificial intelligence by mandating that advertisers label their AI-generated ads starting next year. This measure comes in response to the growing risks presented to consumers, especially older individuals who find it difficult to discern AI-made content.

Seoul, South Korea

The issue involves AI-generated advertisements utilising deepfake videos and audios of celebrities or digitally fabricated experts to promote various products, including food, pharmaceutical items, cosmetics, and illegal gambling sites, frequently appearing on social media platforms such as YouTube and Facebook. The government plans stipulate that "anyone who creates, edits, and posts AI-generated photos or videos will be required to label them as AI-made", and platform users will be prohibited from tampering with or removing these labels. Officials emphasize the necessity of ramping up the screening and removal of problematic AI-generated ads and imposing fines. The government is seeking to revise the telecommunications act and related laws so that the labeling mandate, along with strengthened monitoring and punitive measures, can become effective in early 2026. Platform operators will also share responsibility for ensuring that advertisers comply with these new labeling rules.

The regulatory push is needed because officials are finding it increasingly difficult to monitor and detect the growing number of false ads. The volume of illegal online ads for food and pharmaceutical products identified by the Food and Drug Safety Ministry rose significantly, from approximately 59,000 in 2023 to more than 96,700 in 2024. The problem is expanding into other sectors as well, including private education and illegal gambling services. Beyond false advertising, South Korea is also dealing with severe digital risks, such as sexual abuse enabled by AI, as highlighted by a recent case where a man was sentenced to life in prison for operating an online blackmail ring that sexually exploited victims using deepfakes and manipulated images.

To actively discourage the creation of false AI-generated advertisements, officials plan to introduce penalties and raise fines next year. Individuals who knowingly distribute fabricated information online could face liability for damages up to "five times the losses incurred". Monitoring procedures will also be strengthened, enabling reviews within 24 hours and introducing an emergency process to block harmful ads even before the full deliberation is finished. Interestingly, the government plans to leverage AI technology itself to bolster the monitoring capabilities of agencies such as the Food and Drug Safety Ministry and the Korea Consumer Agency.

Despite these necessary measures to minimize the side effects of new technologies, South Korea remains deeply committed to embracing the "AI era". The government continues to reiterate its ambition for AI, pledging national efforts to strengthen the country's capabilities in advanced computer chips essential for the global AI race. These strategic plans include increasing research and development spending on AI-specific chips and other advanced semiconductor products, alongside expanding chip manufacturing hubs beyond the metropolitan areas surrounding Seoul.

Source: AP