Hyojung (Kelly) Shin of SOMA Law Group has joined KBS1 Radio's <Current Affairs Headquarters with Jeong Gwanyong (정관용의 시사본부)> as a regular guest on its legal segment, <The Law You Didn't Know (세상에 이런 법이)>. Kelly will appear periodically to explain a range of legal issues in plain terms for a general audience. On 20 September 2026, the segment addressed the topic "How Far Can AI Advertising Go? — Korea's Ban on 'Fake Doctor' Ads and the Duty to Label Virtual Personas."
Why generative AI advertising is now being regulated in Korea
The use of generative AI in advertising is growing rapidly. According to the Interactive Advertising Bureau (IAB), roughly 30% of online video advertisements were produced with generative AI in 2025, and the figure is expected to reach 40% in 2026. The Korea Broadcast Advertising Corporation likewise released a public service advertisement made with generative AI in 2025. Where AI-generated content was once easy to spot, it has become difficult to distinguish a virtual persona from a real person without a "virtual persona" label — the point at which the regulatory discussion begins.
Kelly explained on air that AI advertising is not problematic in itself; the problem arises when an AI-generated figure poses as a real person, and in particular as a professional. She cited the case of an AI-generated doctor in a white coat who promoted an ordinary food product as having anti-ageing effects, generating KRW 8.1 billion in sales over nine months; in June 2026, the Ministry of Food and Drug Safety referred the company to the prosecution.
Korea's ban on AI "fake doctor" and "fake pharmacist" advertising — amendments to the food labeling, pharmaceutical, cosmetics and medical device laws
In response, amendments to the Act on Labeling and Advertising of Foods, the Pharmaceutical Affairs Act, the Cosmetics Act and the Medical Devices Act were promulgated in the first half of 2026 and take effect in November 2026. The amended laws prohibit advertisements in which AI-generated fake doctors, pharmacists or similar professionals recommend pharmaceuticals, medical devices, health functional foods or cosmetics.
For example, an AI virtual model simply holding a cosmetic product is permitted; one wearing a white coat and recommending the product "as a specialist" is not. Recommendations by doctors and pharmacists were already prohibited under Korean law; the amendments close the gap that allowed those rules to be circumvented through AI-generated professionals. Violations may be punished by a fine or imprisonment.
KFTC guideline revision — disclosure requirements for AI virtual personas and the limits of testimonial advertising
Beyond pharmaceuticals and medical devices, the Korea Fair Trade Commission has revised its Guidelines on Labeling and Advertising Concerning Recommendations and Endorsements, in force since June 2026, to impose a disclosure requirement on posts featuring AI-based virtual personas. Blog posts must disclose in the title or introduction; videos must carry a continuous "virtual persona" caption, and a small notice at the end of a video is insufficient. A disclosure does not cure an advertisement framed as a personal testimonial — "I tried it and it worked" — since a virtual persona cannot have used the product, and such expressions may be misleading as to personal experience and constitute unfair advertising.
The common thread in international regulation is transparency. The US Federal Trade Commission (FTC) guidance requires clear disclosure where a virtual persona makes an endorsement, and the European Union's AI Act, applicable since August 2026, requires AI-generated content to be watermarked with no exception for commercial advertising. Korea is developing corresponding watermarking obligations for generative AI output and deepfake content under its Framework Act on the Development of Artificial Intelligence and Establishment of a Foundation for Trust (the AI Framework Act).
Topics covered
The spread of generative AI advertising and why consumers can no longer identify AI-generated content by eye
The AI "fake doctor" advertising case and the MFDS's referral to the prosecution
Amendments to Korea's food labeling, pharmaceutical, cosmetics and medical device laws - the two elements of the prohibition, penalties, and the November 2026 effective date
The KFTC's disclosure requirement for AI virtual personas and the limits of testimonial-style advertising
International developments, including the US FTC guidance and the EU AI Act
What consumers should check - caution toward any doctor or pharmacist recommendation and the presence of a "virtual persona" label
Labeling requirements for generative AI output and deepfake content under Korea's AI Framework Act, and the challenges ahead
Frequently asked questions
Is AI-generated advertising banned in Korea? No. The prohibition covers advertisements in which AI-generated fake doctors, pharmacists or similar professionals recommend pharmaceuticals, medical devices, health functional foods or cosmetics. An AI virtual model presenting a product without posing as a professional remains permitted.
When does Korea's AI "fake doctor" advertising ban take effect? The amendments to the Act on Labeling and Advertising of Foods, the Pharmaceutical Affairs Act, the Cosmetics Act and the Medical Devices Act were promulgated in the first half of 2026 and take effect in November 2026. Violations may be punished by a fine or imprisonment.
What disclosure is required for advertisements featuring AI virtual personas? Under the KFTC's Guidelines on Labeling and Advertising Concerning Recommendations and Endorsements, posts featuring AI-based virtual personas have been subject to a disclosure requirement since June 2026 — in the title or introduction of a blog post, and by a continuous "virtual persona" caption in a video. Even with a disclosure, testimonial-style claims by a virtual persona may constitute unfair advertising.
What should consumers look for? Treat any advertisement featuring a doctor's or pharmacist's recommendation with caution — such advertising is prohibited even where the professional is real — and check for a "virtual persona" label.
About SOMA Law Group and Hyojung (Kelly) Shin
SOMA Law Group is a boutique law firm founded by alumni of Shin & Kim LLC, advising clients in the healthcare and K-beauty industries and venture capital firms. Hyojung (Kelly) Shin advises on international disputes, startup investment and cross-border transactions, and serves as Diversity and Inclusion Officer of the International Bar Association (IBA) Arbitration Committee. Kelly's appearances on the <The Law You Didn't Know> segment of KBS1 Radio's <Current Affairs Headquarters with Jeong Gwanyong> will continue to be published in the News section of the SOMA Law Group website.
Why generative AI advertising is now being regulated in Korea
The use of generative AI in advertising is growing rapidly. According to the Interactive Advertising Bureau (IAB), roughly 30% of online video advertisements were produced with generative AI in 2025, and the figure is expected to reach 40% in 2026. The Korea Broadcast Advertising Corporation likewise released a public service advertisement made with generative AI in 2025. Where AI-generated content was once easy to spot, it has become difficult to distinguish a virtual persona from a real person without a "virtual persona" label — the point at which the regulatory discussion begins.
Kelly explained on air that AI advertising is not problematic in itself; the problem arises when an AI-generated figure poses as a real person, and in particular as a professional. She cited the case of an AI-generated doctor in a white coat who promoted an ordinary food product as having anti-ageing effects, generating KRW 8.1 billion in sales over nine months; in June 2026, the Ministry of Food and Drug Safety referred the company to the prosecution.
Korea's ban on AI "fake doctor" and "fake pharmacist" advertising — amendments to the food labeling, pharmaceutical, cosmetics and medical device laws
In response, amendments to the Act on Labeling and Advertising of Foods, the Pharmaceutical Affairs Act, the Cosmetics Act and the Medical Devices Act were promulgated in the first half of 2026 and take effect in November 2026. The amended laws prohibit advertisements in which AI-generated fake doctors, pharmacists or similar professionals recommend pharmaceuticals, medical devices, health functional foods or cosmetics.
For example, an AI virtual model simply holding a cosmetic product is permitted; one wearing a white coat and recommending the product "as a specialist" is not. Recommendations by doctors and pharmacists were already prohibited under Korean law; the amendments close the gap that allowed those rules to be circumvented through AI-generated professionals. Violations may be punished by a fine or imprisonment.
KFTC guideline revision — disclosure requirements for AI virtual personas and the limits of testimonial advertising
Beyond pharmaceuticals and medical devices, the Korea Fair Trade Commission has revised its Guidelines on Labeling and Advertising Concerning Recommendations and Endorsements, in force since June 2026, to impose a disclosure requirement on posts featuring AI-based virtual personas. Blog posts must disclose in the title or introduction; videos must carry a continuous "virtual persona" caption, and a small notice at the end of a video is insufficient. A disclosure does not cure an advertisement framed as a personal testimonial — "I tried it and it worked" — since a virtual persona cannot have used the product, and such expressions may be misleading as to personal experience and constitute unfair advertising.
The common thread in international regulation is transparency. The US Federal Trade Commission (FTC) guidance requires clear disclosure where a virtual persona makes an endorsement, and the European Union's AI Act, applicable since August 2026, requires AI-generated content to be watermarked with no exception for commercial advertising. Korea is developing corresponding watermarking obligations for generative AI output and deepfake content under its Framework Act on the Development of Artificial Intelligence and Establishment of a Foundation for Trust (the AI Framework Act).
Topics covered
Frequently asked questions
Is AI-generated advertising banned in Korea?
No. The prohibition covers advertisements in which AI-generated fake doctors, pharmacists or similar professionals recommend pharmaceuticals, medical devices, health functional foods or cosmetics. An AI virtual model presenting a product without posing as a professional remains permitted.
When does Korea's AI "fake doctor" advertising ban take effect?
The amendments to the Act on Labeling and Advertising of Foods, the Pharmaceutical Affairs Act, the Cosmetics Act and the Medical Devices Act were promulgated in the first half of 2026 and take effect in November 2026. Violations may be punished by a fine or imprisonment.
What disclosure is required for advertisements featuring AI virtual personas?
Under the KFTC's Guidelines on Labeling and Advertising Concerning Recommendations and Endorsements, posts featuring AI-based virtual personas have been subject to a disclosure requirement since June 2026 — in the title or introduction of a blog post, and by a continuous "virtual persona" caption in a video. Even with a disclosure, testimonial-style claims by a virtual persona may constitute unfair advertising.
What should consumers look for?
Treat any advertisement featuring a doctor's or pharmacist's recommendation with caution — such advertising is prohibited even where the professional is real — and check for a "virtual persona" label.
About SOMA Law Group and Hyojung (Kelly) Shin
SOMA Law Group is a boutique law firm founded by alumni of Shin & Kim LLC, advising clients in the healthcare and K-beauty industries and venture capital firms. Hyojung (Kelly) Shin advises on international disputes, startup investment and cross-border transactions, and serves as Diversity and Inclusion Officer of the International Bar Association (IBA) Arbitration Committee. Kelly's appearances on the <The Law You Didn't Know> segment of KBS1 Radio's <Current Affairs Headquarters with Jeong Gwanyong> will continue to be published in the News section of the SOMA Law Group website.