On May 26, 2026, South Korea promulgated Amendment No. 21709 to the Cosmetics Act, explicitly prohibiting the use of AI-generated virtual persons in cosmetics advertising where such content could mislead consumers into believing that doctors, pharmacists, university professors, or other experts are guaranteeing, recommending, or using the cosmetics.
Concurrently, the Korea Fair Trade Commission (KFTC) has revised the "Guidelines for Review of Indication/Advertisement on Recommendation and Guarantee," introducing new labeling requirements for AI-generated virtual persons in advertisements, effective June 1, 2026.
Background
In recent years, with the rapid development of generative AI technology, the cosmetics industry has increasingly adopted AI-driven marketing tools to create hyper-realistic advertising content at scale. Korean regulatory authorities have observed a growing number of online advertisements featuring AI-generated expert endorsements and deepfake celebrity recommendations, which can distort consumer purchasing decisions and undermine market fairness.
On May 26, 2026, South Korea promulgated the Partial Amendment to the Cosmetics Act (Act No. 21709), issued by the Ministry of Food and Drug Safety (MFDS) Cosmetics Policy Division (Official Document No. 화장품정책과-3698, dated May 27, 2026). The amendment aims to prohibit the use of AI-generated virtual persons in cosmetics advertising that may mislead consumers. The amendment will enter into force on November 27, 2026.
In addition, the Korea Fair Trade Commission (KFTC) has concurrently revised the "Guidelines for Review of Indication/Advertisement on Recommendation and Guarantee," adding AI-generated virtual persons as a new category of recommendation/guarantee subject and establishing specific labeling requirements. The revised guidelines took effect on June 1, 2026.
Key Amendments to the Cosmetics Act
The core content of this amendment is the addition of regulations on AI virtual person advertisements to the advertising prohibition provisions of the Cosmetics Act. Specifically, the following types of advertisements are explicitly prohibited:
Advertisements utilizing virtual audio, images, or videos generated by AI systems that are difficult to distinguish from real content, which could mislead consumers into believing that doctors, pharmacists, university professors, or other experts in relevant fields are guaranteeing, designating, certifying, recommending, guiding, or using the cosmetics.
It should be noted that this amendment does not impose a blanket ban on the use of AI technology in cosmetics advertising. Rather, it clarifies that AI-generated content is not exempt from existing advertising compliance obligations merely because it was produced by automated systems. In other words, AI-generated content may be deemed unfair advertising if it:
- Falsely implies endorsement by a real person;
- Exaggerates product efficacy through synthetic imagery;
- Fabricates false consumer reviews or user experiences;
- Uses AI-generated medical or scientific authority figures without disclosure;
- Otherwise misleads consumers regarding the nature or effects of a cosmetic product.
Revision of the KFTC Guidelines for Review of Indication/Advertisement on Recommendation and Guarantee
In conjunction with the Cosmetics Act amendment, the Korea Fair Trade Commission (KFTC) has revised the "Guidelines for Review of Indication/Advertisement on Recommendation and Guarantee" (hereinafter referred to as the "Review Guidelines").
The key revisions include:
1. Addition of AI-Generated Virtual Persons as Recommendation/Guarantee Subjects
The Review Guidelines incorporate AI-generated virtual persons as a new category of recommendation/guarantee subjects. When using AI-generated virtual persons for advertising recommendations or guarantees, the advertisement must clearly indicate that the subject is a "virtual person."
2. Truthfulness Requirements
Even when a "virtual person" label is displayed, if the content recommended or guaranteed by the virtual person is presented as being based on personal experience or usage, but does not correspond to actual empirical facts, it may still be deemed as unfair indication/advertising.
3. Specific Labeling Methods
The Review Guidelines distinguish between text-based media and visual media, prescribing separate labeling requirements for each:
(1) Text-Based Media (Blogs, Internet Communities, etc.)
- Title or beginning of the post: Display "[Virtual Person Included]" before the title, or include phrases such as "This post contains a virtual person generated based on AI" at the beginning of the body text;
- Photos: Display "[Virtual Person]" in close proximity to the virtual person, using a color distinguishable from the background.
(2) Visual Media (Photos, Videos, etc.)
- Continuously display the "Virtual Person" label in close proximity to the virtual person throughout its appearance, using a color distinguishable from the background.
(3) Purpose of Labeling
These labeling requirements are designed to ensure that consumers can clearly identify that the recommending/guaranteeing subject is an AI-generated virtual person rather than a real expert, thereby protecting consumers' rational purchasing decisions. At the same time, the guidelines provide clear guidance for advertisers, influencers, and other compliance subjects on the proper use of virtual persons in advertising, improving the predictability of regulatory enforcement.
South Korea's AI Advertising Regulatory Trends
This Cosmetics Act amendment is part of the South Korean government's broader strategy to combat AI-generated false advertising. In recent years, the Korean government has continuously strengthened its regulation of AI-generated content, introducing a series of measures including:
- Requiring AI-generated photos and videos to be labeled as AI-created;
- Prohibiting the arbitrary removal or damage of AI-generated content labels;
- Deploying AI-assisted monitoring systems to improve the efficiency of identifying deceptive online advertisements;
- Strengthening the review of digital marketing authenticity in high-risk sectors such as cosmetics, health foods, and pharmaceuticals.
These measures indicate that South Korea is establishing a transparency-based AI governance model, where AI-generated commercial content must be identifiable, advertisers bear legal responsibility regardless of the production method employed, and platforms may also assume compliance responsibilities.
CIRS Reminder
This amendment to South Korea's Cosmetics Act is the world's first specialized legislation targeting AI virtual person advertising in the cosmetics sector, with significant implications for companies engaged in the cosmetics business in the Korean market. CIRS Group reminds relevant companies to pay particular attention to the following:
1. Conduct a comprehensive review of existing advertising materials. Companies should promptly conduct a thorough review of all advertising materials currently used in the Korean market, including social media content, influencer collaboration materials, and e-commerce product pages, to determine whether any involve AI-generated virtual persons or deep synthetic content. Particular attention should be paid to high-risk content such as AI-generated expert images, celebrity endorsements, and before-and-after comparison images.
2. Implement labeling requirements without delay. The KFTC's Review Guidelines took effect on June 1, 2026. Companies should immediately add the required labels to all advertisements involving AI-generated virtual persons in accordance with the guidelines. For text-based media, label "Virtual Person" at the title or beginning of the post; for visual media, continuously display the label in close proximity to the virtual person.
3. Be aware of the Cosmetics Act amendment enforcement date. The Cosmetics Act amendment will officially enter into force on November 27, 2026. Companies should complete all compliance adjustments to relevant advertising content before this date. Given that reviewing, modifying, and reproducing advertisements may require considerable time, it is advisable to initiate compliance assessment work as early as possible.
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