South Korea is considering an influencer disclosure law to curb manipulation and protect investors.
South Korea’s Democratic Party has introduced legislation requiring financial influencers to disclose their personal assets and compensation when recommending cryptocurrencies or stocks, according to reports from the country’s legislature.
The proposal, led by lawmaker Kim Seung-won, includes amendments to the Capital Markets Law and the Virtual Asset User Protection Law. The draft framework would require influencers to disclose the type and quantity of assets held when promoting specific tokens or stocks via social media, livestreams or broadcast channels, according to the legislative text.
Influencers would also be required to disclose any compensation received in exchange for endorsements. Violations would result in penalties similar to those applied in cases of unfair trade practices, including fines and possible criminal liability, the proposal states.
The legislation aims to prevent undisclosed promotional activities that can lead to pump-and-dump schemes, in which influencers promote assets before selling them by raising prices, according to the Democratic Party statement. The measures aim to reduce the risks of market manipulation and improve investor protection through mandatory transparency around shareholdings and financial incentives.
The proposal follows a broader regulatory expansion in South Korea throughout 2026. The Financial Supervision Service has deployed AI-based monitoring tools designed to detect abnormal trading patterns and market manipulation in real time, according to the agency.
Additional measures introduced this year include new reporting requirements for foreign real estate investors, who must now disclose cryptocurrency transaction history in certain cases, according to regulatory filings.
South Korea has one of the most active retail cryptocurrency markets in the world. The legislation, if passed, would represent one of the world’s most direct regulatory measures targeting social media-based financial promotion in the digital assets sector, according to regulatory analysts.