Insights · Entering Korea
Paying Korean influencers? Why the #광고 label is your problem too
In July 2026 Korea's Fair Trade Commission sanctioned three plastic surgery clinics over reviews written by real patients. The patients had the surgery and the reviews were their own. What the posts did not say was that the patients got a discount for writing them, and it was the clinics that received the orders.
- Since 1 June 2026, the KFTC endorsement guideline (Rule No. 499) also requires AI-generated virtual people in ads to be labelled as virtual.
- Under the guideline, the advertiser or the endorser must disclose any economic tie, and the advertiser bears the burden of proving what endorsers claim.
- Unfair ads under the Fair Labeling and Advertising Act can bring a surcharge of up to 2% of sales, or up to KRW 500 million where sales cannot be calculated.
Who is liable: the brand, not only the creator
The law is written for the business that advertises. Article 3(1) of Korea's Fair Labeling and Advertising Act bars businesses from running deceptive ads or having another business run them for them. The KFTC's endorsement guideline (Rule No. 499, in force from 1 June 2026) applies to those ads, including posts a creator makes because of a financial tie to the advertiser. It says the advertiser or the endorser must disclose that tie, and that the advertiser carries the burden of proving what the endorser says about the product.
Enforcement has followed that line. In its first Instagram case, in November 2019, the KFTC sanctioned seven cosmetics, small appliance and diet product companies, with fines totalling KRW 269 million, and did not sanction the influencers. In July 2026 it issued corrective and publication orders to three plastic surgery clinics. Since 2018 they had recruited "promotion models", given them surgery discounts, set word counts and required before-and-after photos, and never asked them to mention the discount. The KFTC said a review can be deceptive even when the person really had the treatment.
The sanctions in the Act are real money:
- A surcharge of up to 2% of the relevant sales, or up to KRW 500 million where there are no sales or they are hard to calculate (Article 9).
- Up to two years in prison or a fine of up to KRW 150 million (Article 17), with the company also fined when an employee commits the offence unless it supervised properly (Article 19).
- Liability for consumers' damages, which the business cannot escape by showing it acted without intent or negligence (Article 10).
For your company: if a Korean distributor or agency runs creators for you, put in writing who writes the brief, who checks each post, and who takes posts down. A missing label costs nothing to fix before it goes live.
What counts as "paid" in Korea
Anything of value that could change what the creator says. The guideline lists cash, the product itself, gift vouchers, points and discounts, and posts by the advertiser's or its ad agency's own staff. Since a December 2024 revision, payment promised later or on conditions, such as a commission paid only if sales come in, also has to be disclosed; the KFTC's December 2025 handbook for advertisers, agencies and influencers walks through examples.
| Situation | Disclose? |
|---|---|
| Fee, voucher or points for a post | Yes |
| Free product sent to a chosen creator | Yes, for example 협찬 (sponsored) |
| Commission per sale, or payment if targets are met | Yes |
| Your staff or your agency's staff posting reviews | Yes |
| Customer reviews in exchange for a discount on your store | Yes |
| Samples given to everyone who applied, reviewed voluntarily | The guideline gives this as an example where disclosure may not be needed |
For your company: treat the last row as the only exception. Gifting boxes sent to a hand-picked list of creators are not "samples for everyone".
Where the Korean label goes and what it must say
The label has to be in the same language as the post. For posts aimed at Korean consumers, the guideline names AD, PR, Sponsor, sp, Partnership, Collaboration, Ambassador and Thanks to as not acceptable. Clear wording includes #광고 (advertisement), #협찬 (sponsored), 광고입니다 (this is an ad) and 소정의 원고료를 지급받았습니다 (I was paid a fee for this post). Wording the guideline says is not clear enough includes 체험단 (review team), 체험 후기 (trial review), 선물 (gift), a brand hashtag on its own, and "brand × creator".
| Format | Where the label goes |
|---|---|
| Blog or café post | In the title or at the very start, set apart from the text. Not in a comment or behind "more". |
| Photo post | Inside the photo, or in the first line of the caption. As a hashtag, it should be the first one. |
| Video | In a title short enough not to be cut off on mobile, or in the video at the start and end and repeated. The guideline's example repeats it every five minutes. |
| Live stream | In the title or on screen; if spoken, at the start and end and repeated for late viewers. |
| AI-generated person | "가상인물" (virtual person) at the top of the post, or next to the character while it is on screen. New from 1 June 2026. |
Review campaigns are watched, not only big creators
A common Korean format is the 체험단 campaign, where a group of Naver bloggers get a free product and post reviews. That is exactly the kind of post the rules cover, and "체험단" on its own does not count as a label. The KFTC checks every year: in its 2024 monitoring of Instagram, Naver Blog and YouTube, carried out by the Korea Internet Advertising Foundation, it found 22,011 suspected undisclosed ads, and 26,033 posts were corrected after it asked creators and advertisers to fix them (published in March 2025). It said the share of short-form videos had grown.
For your company: search Naver for your brand name with 협찬 or 체험단 and read what comes up. Old posts from a previous distributor still carry your brand.
Lines to paste into every Korean creator brief: 제목 또는 첫 줄에 "광고" 또는 "협찬" 표기 (label in the title or first line). 해시태그를 쓰면 첫 번째는 #광고 (if you use hashtags, #광고 goes first). 영상은 시작과 끝에 표기하고 중간에 반복 (videos: label at start and end, repeated). 효능은 제공된 자료 범위 안에서만 (claims only within the evidence we gave you).
How HB Crossborder works with this
Our Korea Entry package covers Naver and KakaoTalk set-up and monthly Korean content. It does not include influencer fees, and any paid post we help plan carries a Korean label. This article is general information, not legal advice; check contracts and claims with a Korean lawyer. See our services, or get a free visibility check and we will show you, within 48 hours, what Korean shoppers find when they search your brand on Naver.
- Search Naver for your brand name with 협찬 (sponsored) and 체험단 (review team) and list any posts without a clear label.
- Add a Korean disclosure clause to every creator and agency contract: 광고 or 협찬 in the title or first line, first hashtag #광고.
- Write down who in your Korean chain (distributor, agency or your own team) briefs creators and who approves each post before it goes live.
- Collect evidence for every product claim you give creators, since the advertiser carries the burden of proof.
- Check whether any campaign uses an AI-generated person and add the 가상인물 label where it appears.
Send us one URL and get a free visibility report within 48 hours.
- Guidelines on endorsement and testimonial advertising, Rule No. 499 (Korean), Korea Fair Trade Commission, via National Law Information Center (2026-06-01)
- Revised endorsement advertising guidelines take effect (press release, Korean), Korea Fair Trade Commission (2026-05-29)
- Sanctions on three plastic surgery clinics for undisclosed paid reviews (press release, Korean), Korea Fair Trade Commission (2026-07-10)
- Fair Labeling and Advertising Act, Act No. 20712, Articles 3, 9, 10, 17 and 19 (Korean), National Law Information Center (2025-01-21)
- Revised handbook on disclosing economic interests distributed (Korean), Korea Fair Trade Commission (2025-12-02)
- 2024 SNS deceptive advertising monitoring results (Korean), KDI Economic Information and Education Center (2025-03-17)
- The KFTC's first sanctions on influencer advertising (Korean), Kim & Chang (2019-12-05)
General information, not legal or tax advice. Check with a professional before acting on it.