Overview
- Democratic Party lawmaker Kim Seung-won introduced draft amendments to the Capital Market and Financial Investment Business Act and the Virtual Asset Users Protection Act on Feb. 25.
- Influencers who repeatedly give investment advice or receive payment would need to reveal the type and quantity of assets they hold as well as any compensation tied to specific recommendations.
- The rules would apply to posts and promotions across social media, livestreams, broadcasts, and publications.
- Penalties would mirror market-crime sanctions, with reports citing up to one year in prison or fines up to 30 million won for stock nondisclosure and tougher consequences proposed for crypto violations.
- Enforcement details, including frequency and compensation thresholds, would be set by presidential decree, while the FSS has deployed AI tools to detect abnormal trading after reports of illegal advisory activity rose from 132 in 2018 to 1,724 in 2024.