BlockBeats report: On February 25, according to Korean media, South Korean National Assembly member Kim Seung-won of the Democratic Party is preparing to amend the Capital Markets Act and the Virtual Asset User Protection Act, proposing to impose mandatory financial disclosure requirements on "finfluencers" who promote stocks and virtual assets on social media and other platforms.
According to the draft, any individual who recommends financial investment products or virtual asset transactions to an indefinite majority of people with the intent of repeatedly providing investment advice or receiving compensation must disclose the compensation received, as well as the types and quantities of related financial products and virtual assets held. The specific scope of application will be further detailed by presidential decree.
Violators will be subject to penalties comparable to those for market manipulation, front-running, and other unfair trading practices in capital markets. The legislative objective is to enhance investment information transparency and prevent investor losses resulting from information asymmetry and conflicts of interest.
Reports indicate that, as the influence of SNS platforms has grown, the number of registrations by South Korea’s “investment advisory-like operators” increased from 132 in 2018 to 1,724 in 2024—a more than twelvefold rise over six years. Regulators have noted a rise in unregistered practitioners profiting through false advertising, misleading statements, and even market manipulation.
Overseas, regulatory bodies such as the UK’s Financial Conduct Authority (FCA) and the U.S. Securities and Exchange Commission (SEC) have recently strengthened compliance oversight of financial influencers.