South Korea Targets Finfluencers with Asset Disclosure Law

South Korea’s Democratic Party of Korea is advancing legislation requiring financial influencers to disclose their asset holdings. The proposed bills target individuals who recommend stock and virtual asset investments on social media platforms. Lawmakers aim to protect retail investors from opaque information as finfluencer influence continues expanding.

South Korea🇰🇷 is proposing that all crypto influencers disclose their personal holdings

A new bill from the country's ruling political party is asking so-called "fin-fluencers" to disclose their holdings as well as sponsored kickbacks💰 pic.twitter.com/gn95PalQHy

— Danny Kunwoong Park (@ParkKunwoong) February 25, 2026

Representative Kim Seung-won of the National Assembly’s Political Affairs Committee is preparing two amendments. The first targets the Capital Markets and Financial Investment Business Act. The second addresses the Virtual Asset Users Protection Act.

Both amendments mandate disclosure of compensation received and holdings in financial products or virtual assets. The rules apply to individuals repeatedly advising specific audiences on buying or selling investments. Those inducing trades for fees also fall under the new requirements.

The legislation covers advice delivered through publications, communications, broadcasts, and online platforms. Presidential decree will determine the specific scope of application. Violations may carry penalties equivalent to market manipulation and front-running offenses.

South Korea Sees Mounting Evidence Fueling Regulatory Push

Financial Supervisory Service data reveals a dramatic increase in problematic investment advisory activity. Reports of similar investment advisory firms surged from 132 in 2018 to 1,724 in 2024. This represents a twelve-fold increase over six years.

Unqualified individuals have proliferated across social media platforms. Many allegedly earn unfair profits through indiscriminate investment advice. False information dissemination and market manipulation have become persistent concerns for regulators.

Ahn Yu-mi, senior researcher at the Capital Market Research Institute, provided context. She noted registered pseudo-investment advisory firms have increased significantly. Online sales channels have expanded the possibility of detecting illegal conduct.

Ahn emphasized the need for comprehensive oversight mechanisms. She called for pre-monitoring and post-sanctions by financial authorities. Continuous monitoring of finfluencers and cooperating financial institutions remains essential.

The researcher recommended additional rules for financial information shared via social media. Authorities must adapt to the evolving landscape of investment advice delivery.

Global Precedents Shape Korean Approach

International regulators have already established finfluencer oversight frameworks. The UK Financial Conduct Authority restricts promotion to pre-approved financial products only. This approach limits potential investor harm from unvetted recommendations.

American authorities have also taken enforcement action. The Securities and Exchange Commission has issued reprimands for violations. The Financial Industry Regulatory Authority has levied fines against non-compliant finfluencers.

Representative Kim explained his rationale for the legislation. He cited finfluencers advising unspecified audiences without compensation disclosure. Their influential positions create asymmetric information risks for ordinary investors.

Meanwhile, the Bank of Korea is pursuing separate cryptocurrency regulations. The central bank submitted a report to the National Assembly’s Finance and Economic Planning Committee on February 23. The document restricts won-denominated stablecoin issuance to regulated banks.

The Bank of Korea is drawing a hard line: Won-denominated stablecoins must be issued by licensed commercial banks.

In a report to Parliament, the BOK argued that only banks have the "regulatory DNA" (including strict capital and compliance standards) are to handle currency-like… pic.twitter.com/M6w4YZmYmB

— Conor Kenny (@conorfkenny) February 23, 2026

Governor Lee Chang-yong previously warned about stablecoin risks at the Asian Financial Forum. He flagged potential circumvention of capital flow controls through stablecoin combinations. The central bank seeks comprehensive legislation covering monetary policy and financial system integrity.

South Korea faces pressure to open institutional crypto trading channels. Authorities have permitted residents to invest in overseas-issued virtual assets. Financial regulators are now considering a new registration system for domestic institutional issuance.

The dual regulatory push signals Korea’s comprehensive approach to digital asset oversight. Finfluencer accountability and stablecoin controls represent parallel tracks. Both aim to strengthen investor protection while maintaining financial stability.

Industry participants must prepare for heightened compliance requirements. Asset disclosure obligations will fundamentally change how investment advice operates online. The legislation’s passage could reshape South Korea’s financial influencer landscape entirely.