Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Korea to mandate labeling of AI-generated content to counter fake ads
Image generated by ChatGPT
By Nam Hyun-woo
The government will require online platforms to label content generated by artificial intelligence (AI) in a bid to curb the rapid spread of fake and exaggerated advertisements.
During a policy coordination meeting held Wednesday, the government announced a set of measures to curb the influx of deceptive advertising disrupting the market through the use of generative AI and other digital tools.
The move comes as advertisements using fabricated experts or celebrity deepfakes have been spreading on social media platforms, particularly in the food and pharmaceutical sectors.
Recently, social media platforms have seen advertisements featuring AI-generated doctors recommending supplements or medications, misleading consumers into believing that they are endorsed by medical professionals. Some cases have even involved deepfakes of celebrities.
According to the Ministry of Food and Drug Safety (MFDS), there were 58,782 cases of AI-generated online ads for food and drug products in 2021, and the figure increased to 96,762 last year. As of September this year, 68,952 cases had already been detected.
Examples of artificial intelligence-generated ads featuring fake medical experts / Courtesy of Fair Trade Commission
To counter such ads, the Korea Media and Communications Commission will mandate that content creators place labels on AI-generated content to prevent misleading consumers.
Under the new rules, anyone who produces, edits or uploads AI-generated content will be required to clearly indicate that the photos or videos were generated with AI. Deleting or tampering with such labels will be prohibited.
Platform operators will be required to ensure that content creators are complying with the labeling rules by providing standardized labeling methods and notifying users of their obligations.
MFDS and the Fair Trade Commission will clarify the standards for determining which AI-generated ads are lawful.
For example, if an AI-generated advertisement recommends a product without clearly indicating that the recommender is a “virtual human,” it will be considered unfair advertising. Also, ads featuring AI-generated doctors or other experts recommending food or pharmaceutical products will be deemed deceptive.
To address the spread of malicious, false or manipulated information, the government plans to introduce punitive damages of up to five times the actual harm. Penalties under current advertising laws will also be significantly increased.
To that end, the government plans to push for revisions to the Information and Communications Network Act and the Act on Fair Labeling and Advertising in the first half of next year.
The labeling obligations will be implemented when Korea’s AI Basic Act takes effect in January next year.
“Through these measures, the government will minimize the side effects of new technologies and establish a market order suited for the AI era,” Prime Minister Kim Min-seok said.