[Notice] Guidelines on Advertising Materials Using AI-Generated Virtual Characters

Hello. This is Wadiz.

As the Korea Fair Trade Commission has revised and enacted the "Review Guidelines on Labeling and Advertising of Recommendations and Endorsements" effective June 1, 2026, we would like to provide guidelines on precautions when operating advertising materials using AI-generated virtual characters.

With the recent advancement of AI technology, virtual characters that are difficult to distinguish from real people are increasingly being used in advertising materials. Accordingly, in the case of advertisements where virtual characters generated by AI recommend or endorse products, it is required to clearly indicate that the character is a 'virtual character' to prevent consumers from mistaking it for the actual usage experience, review, or recommendation of a real person.

These standards may apply not only to content within Wadiz such as project stories and news, but also to all advertising content directly produced and executed by makers, including display ads, push ads, and targeted ads (Meta).

1. Cases Where Disclosure Is Required

Disclosure may be required in cases where an AI-generated virtual character recommends or endorses a product, or is depicted as having used or experienced it, as described below.

• When an AI-generated character appears to have used or experienced a product
• When an AI-generated character describes the effects, performance, quality, or satisfaction of a product
• When an AI-generated character recommends a product as if they were a consumer, expert, celebrity, or influencer
• When an AI image or video character who appears to be a real person is used alongside review or recommendation copy

2. How to Disclose

Please display the disclosure in a location where consumers can easily recognize it, depending on the type of content.

• Text materials
  Display [Contains Virtual Character] or "This post contains a virtual character generated by AI." at the beginning of the title or at the start of the body text
• Image materials
  Display [Virtual Character] or [AI-Generated Virtual Character] in a location close to the virtual character
• Video materials
  Continuously display [Virtual Character] or [AI-Generated Virtual Character] in a location close to the virtual character throughout the duration of their appearance

The disclosure text must be shown in a color and size that clearly stands out from the background, and small text or faded colors that are difficult for consumers to notice may not be considered adequate disclosure.

3. Precautions

Even if the virtual character is disclosed as such, if the content depicting the virtual character as actually having used or experienced the product differs from the facts, it may be judged as unfair labeling or advertising.
In particular, please be cautious of the following expressions.

• Expressions that make a virtual expert appear to have conducted actual verification or diagnosis
• Expressions where a virtual character asserts effects, performance, or satisfaction without objective evidence
• Expressions that combine a virtual character's image and copy to appear like actual consumer reviews

Therefore, before producing and executing advertising materials, makers must check in advance whether AI-generated virtual characters are included and whether disclosure standards are being met.

If advertising materials that do not comply with the relevant standards are identified through Korea Fair Trade Commission monitoring or reports, measures such as requests for material revision or restrictions on story exposure and ad execution may be taken.

Thank you.
Wadiz