South Korea’s Cosmetics Act Amendment No. 21709: AI-Generated Advertisements May Now be Deemed as Unfair Advertising
- May 26
- 4 min read
On 26 May 2026, South Korea promulgated Amendment No. 21709 to the Korean Cosmetics Act, signaling a major regulatory shift in how cosmetics advertising will be assessed in the era of generative artificial intelligence (AI). The amendment will enter into force on 27 November 2026.
The amendment reflects growing concerns among regulators regarding the rapid proliferation of AI-generated promotional content, including synthetic influencers, deepfake endorsements, fabricated testimonials, and digitally manipulated efficacy claims. Under the revised framework, advertisements generated or substantially altered using AI technologies may now be treated as unfair or deceptive advertising when they mislead consumers regarding the identity of endorsers, product efficacy, or the authenticity of promotional content.
Why This Matters
The cosmetics industry has increasingly embraced AI-driven marketing tools to create hyper-realistic promotional materials at scale. While these technologies provide efficiencies and creative flexibility, regulators are becoming increasingly concerned that consumers may be unable to distinguish between authentic and artificially generated content.
This concern is particularly acute in sectors such as cosmetics, health foods, and pharmaceuticals, where advertising frequently relies on:
before-and-after imagery,
dermatologist or expert endorsements,
influencer marketing,
celebrity collaborations, and
efficacy demonstrations.
South Korean authorities have identified a sharp increase in misleading online advertising involving AI-generated experts and deepfaked celebrity endorsements. Government agencies noted that such content can distort consumer decision-making and undermine market fairness.
Key Regulatory Clarification
Although the amendment does not prohibit the use of AI in cosmetics advertising outright, it clarifies that AI-generated content is not exempted from existing advertising compliance obligations merely because it was produced by automated systems.
In practical terms, advertisements may be deemed unfair if they:
falsely imply endorsement by a real person,
exaggerate product efficacy through synthetic imagery,
create fabricated consumer reviews or testimonials,
use AI-generated medical or scientific authorities without disclosure, or
otherwise mislead consumers regarding the nature or performance of a cosmetic product.
The amendment therefore strengthens the legal basis for enforcement actions against digitally manipulated or synthetic promotional practices that could deceive consumers.
Alignment with Korea’s Broader AI Governance Direction
The amendment aligns with broader policy developments in South Korea aimed at increasing transparency around AI-generated content.
The Korean government has separately announced plans requiring AI-generated advertisements to be clearly labeled, particularly in response to the rise of deepfake promotions across social media platforms. These measures are intended to combat deceptive advertising practices involving fabricated experts and celebrities.
Taken together, these developments indicate that Korean regulators are moving toward a transparency-based AI governance model where:
AI-generated commercial content must be identifiable,
advertisers remain legally responsible for claims regardless of production method, and
platforms may also bear compliance responsibilities.
Compliance Implications for Cosmetics Companies
The amendment carries significant implications for cosmetics manufacturers, importers, distributors, marketing agencies, and influencers operating in Korea.
Companies using generative AI tools for advertising should now reassess:
influencer and endorsement campaigns,
AI-generated product visuals,
synthetic spokespersons or avatars,
automated review generation,
efficacy simulations,
image enhancement practices, and
disclosure mechanisms for AI-created content.
Businesses should also ensure that internal marketing review procedures adequately assess whether AI-generated content could be interpreted as misleading under Korean advertising standards.
Particular caution should be exercised where AI is used to:
simulate clinical outcomes,
alter skin appearance,
create fictitious experts,
mimic celebrities, or
generate testimonials without clear substantiation.
Potential Enforcement Trends
The amendment is expected to strengthen the enforcement authority of the Ministry of Food and Drug Safety (MFDS), particularly in online monitoring activities.
Authorities have already indicated that AI-assisted monitoring systems may be deployed to identify deceptive online advertisements more efficiently.
As enforcement evolves, companies can expect increased scrutiny over:
digital marketing authenticity,
substantiation of efficacy claims,
disclosure obligations, and
responsibility for third-party advertising conducted by influencers or agencies.
South Korea's Fair Trade Commission has launched a public consultation to propose an amendment to the “Guidelines for Reviewing Labelling and Advertising Regarding Recommendations, Endorsements, etc.”
This proposed amendment will mandate the labelling of 'virtual persons' when using virtual people created with new technologies such as generative AI and deepfake in advertisements, and prescribes the method of labelling.
Specifically, when making recommendations or endorsements through text-based media such as blogs and internet cafes, phrases such as “This post contains a virtual character generated by AI (I를 기반으로 생성된 가상인물이 포함된 게시물입니다)” or “Contains virtual character (가상인줄 포함)” must be displayed in the title or at the beginning of the post. (See below image)
Image Source: South Korea's Fair Trade Commission
Even when making recommendations or endorsements through visual media such as photos and videos, phrases such as “Virtual Character (가상인물)” must be displayed in close proximity to the virtual character while it appears, to prevent consumers from mistaking the virtual character for a real-life expert.
Image Source: South Korea's Fair Trade Commission
how to use AI-generated contect
Conclusion
Amendment No. 21709 represents one of the clearest signals yet that AI-generated marketing content will not exist in a regulatory gray zone within the cosmetics sector.
By clarifying that AI-generated advertisements may constitute unfair advertising when they deceive consumers, South Korea is reinforcing the principle that technological innovation must remain consistent with consumer protection and advertising integrity.
For cosmetics companies operating in Korea or targeting Korean consumers, the amendment underscores the importance of establishing robust AI governance, transparent marketing practices, and stronger internal review systems before the new rules take effect in November 2026.
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