South Korea's new legislation proposes requiring "stock and coin recommendations" financial influencers to disclose their holdings.

On February 25, according to South Korean media reports, Kim Seung-won, a member of the National Assembly from the Democratic Party, is preparing to revise the “Capital Markets Act” and the “Virtual Asset User Protection Act” separately. The proposed amendments aim to impose mandatory financial asset disclosure obligations on “financial influencers” (Finfluencers) who recommend stocks and virtual assets on social media platforms. According to the draft, individuals who repeatedly provide investment advice or receive compensation for recommending financial investment products or virtual asset transactions to the general public must disclose their received compensation, as well as the types and quantities of financial products and virtual assets they hold. The specific scope of application will be further detailed by presidential decree. Violators are expected to face penalties comparable to those for market manipulation, front-running, and other unfair trading practices in the capital markets. The legislative goal is to enhance transparency of investment information and prevent investor losses caused by information asymmetry and conflicts of interest. The report states that as the influence of social media platforms expands, the number of registered “investment advisory-like” practitioners in South Korea has increased from 132 in 2018 to 1,724 in 2024, a more than 12-fold increase over six years. Regulatory authorities believe that some unregistered practitioners are increasingly engaging in false advertising, misleading statements, and even market manipulation for profit. Internationally, agencies such as the UK Financial Conduct Authority (FCA) and the U.S. Securities and Exchange Commission (SEC) have also strengthened compliance regulation of financial influencers in recent years.