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BlogsMandatory 'AI Content Labeling System' Starting 2026: An Essential Guide for Businesses and Marketers
With the rapid advancement of AI technology, marketing strategies utilizing virtual humans or AI-generated content have become commonplace. In response, to prevent consumer confusion and establish a sound market order, the government is set to fully implement the ‘AI Content Labeling System’ starting January 2026. This column summarizes the key aspects of the AI Labeling System—including its background, legal basis, practical labeling methods, and risks of non-compliance—that corporate marketing managers and influencers must be aware of. 1. Background: Preventing Misinformation and Market Disruption The primary reason for enforcing the AI Labeling System as a legal obligation is the surge in false and exaggerated advertisements exploiting AI technology. The "Fake Expert" Problem: There has been an increase in cases where fake doctors or experts created via deepfake technology recommend unverified products, hindering consumers' rational choices and causing financial damage. Establishing Market Order: The government has defined these practices not merely as marketing but as "acts disturbing market order." Consequently, it has mandated the disclosure of AI generation (e.g., "This content was created by AI") to ensure consumers can clearly identify the authenticity of information. 2. Legal Basis and Key Provisions The AI Labeling System is not a simple recommendation but a strong legal obligation based on the following laws: Category Key Provisions Note Framework Act on AI Effective Jan 22, 2026. Mandates labeling and notice for high-impact and generative AI services. Administrative Fines IT Network Act Requires uploaders to label AI content and imposes management/notice responsibilities on platforms. Amendment targeted for Q1 2026 Labeling & Advertising Act Regards concealing or exaggerating AI use as Unfair Labeling/Advertising. Punitive Damages In particular, the Fair Trade Commission (FTC) plans to strictly sanction AI Washing—the act of concealing the use of AI to make content appear human-created—viewing it as deceptive advertising. 3. Practical Guide: Who, What, and How to Label 1) Obligated Parties: AI Business Operators Under the law, the obligated parties are defined as "AI Business Operators." This encompasses not only AI technology developers but all business entities (corporations, organizations, and individuals) that provide products or services utilizing AI. 2) Content Subject to Labeling Generative AI Products/Services: Prior notice is mandatory when providing AI-based services such as chatbots or image generation tools. Deepfake Results: Virtual audio, images, or videos that are difficult to distinguish from reality. Advertising Content: AI-generated content for commercial purposes, such as shopping mall detail pages and influencer sponsored ads. 3) Labeling Methods and Exceptions General Principle: Must be labeled in a way that consumers can clearly recognize (e.g., subtitles, watermarks, etc.). Cultural/Artistic Exception: However, if the content qualifies as a "artistic or creative expression" and labeling would significantly hinder appreciation, flexible labeling exceptions may apply (Article 31, Paragraph 3 of the Framework Act on AI). 4. Penalties and Risks (Fines vs. Damages) Sanctions for violating the AI labeling duty are divided into administrative sanctions (fines) and civil liability (damages). ① Violation of the Framework Act on AI: Administrative Fines If an AI business operator fails to comply with the labeling duty or fails to notify the production of deepfakes, they will receive a corrective order from the Minister of Science and ICT. Failure to comply may result in an administrative fine of up to 30 million KRW. ② Violation of the Labeling & Advertising Act: Punitive Damages Beyond simple failure to label, if the act involves malicious false or exaggerated advertising (e.g., using fake experts), the Fair Labeling and Advertising Act applies. Current: Liability for damages up to 3 times the amount of damage. Proposed Amendment: The government is pushing for an amendment to increase this limit to up to 5 times to eradicate market disturbance. 5. Conclusion and Response The AI Labeling System is not a regulation saying "Do not use AI," but rather a standard of trust requiring "Transparency if AI is used." With the January 2026 implementation approaching, companies must review their internal compliance processes to prevent unnecessary legal disputes. The Corporate Law Team at Decent Law Firm provides professional assistance regarding AI and IT-related legal advisory and compliance system construction. Please feel free to contact us if you have any inquiries.
2026-01-07 Naver Blog -
Blogs
Essential Strategies to Check Before Consulting a Wage Claim Attorney
Unpaid Wages May Go Beyond a Simple Dispute Unpaid wages are not merely a civil monetary dispute. They may constitute a criminal violation of the Labor Standards Act, including Article 36 (Settlement of Monetary Claims) and Article 43 (Payment of Wages). Under Article 109(1) of the Labor Standards Act, such violations may result in criminal liability punishable by up to three years’ imprisonment or a fine of up to KRW 30 million. In principle, unpaid wages constitute a violation of the Labor Standards Act regardless of the employer’s ability to pay or financial difficulties. An exception is recognized only in limited circumstances where, despite the employer’s full good-faith efforts, non-payment was unavoidable to a degree that is socially acceptable (Supreme Court Decision, October 9, 2008, Case No. 2008Do5984). Because unpaid wages directly affect an individual’s livelihood, this issue should never be treated lightly. We hope this article serves as a practical starting point for those currently facing anxiety and uncertainty over wage-related issues. Common Situations That Constitute Unpaid Wages Whether wages are unpaid is determined not by the employer’s explanation or circumstances, but by whether payment was actually made—and whether it was made on time. Substance prevails over form. When the following factors are present, the situation is likely to be deemed unpaid wages: Agreed wages or weekly holiday allowances were not paid on the scheduled payday Overtime, night, or holiday work was performed but the corresponding premiums were omitted Severance pay was not paid within 14 days after termination of employment Despite contractual labels, the worker was in fact under the employer’s direction and supervision Wage payment was delayed due to the company’s cash flow or financial issues Statements such as “payment was scheduled soon” or “the company was experiencing difficulties” do not, by themselves, excuse liability for unpaid wages. Article 43(2) of the Labor Standards Act requires wages to be paid at least once per month on a fixed date. Violation of this provision generally constitutes a breach of the Act. Liability may be exceptionally excluded only where it is socially recognized that payment was impossible despite the employer’s full and sincere efforts (Supreme Court Decision, October 9, 2008, Case No. 2008Do5984). Ultimately, Liability Falls on the Representative One of the most common responses in unpaid wage cases is the belief that “this is merely a company issue.” However, from the perspective of investigations and trials, unpaid wages are often attributed not to the company as an abstract entity, but to the individual representative who decided and managed wage payments. Key considerations include whether the representative determined the priority of fund disbursement, whether wages could have been paid but other expenses were chosen instead, and what actions were taken after becoming aware of the arrears. Explanations such as “the matter was handled by staff” or “it was delegated to the finance team” are frequently insufficient to disperse responsibility. Moreover, attitudes and explanations provided during labor office investigations are often reflected throughout subsequent proceedings. If wage issues are treated as internal disputes or handled without a clear legal framework at this stage, cases can quickly escalate into criminal liability—after which resolution through settlement or delayed payment becomes far more difficult. Unpaid wages are not merely the result of poor management decisions. If mishandled, they can lead to fines imposed on the representative personally, a criminal record, and enhanced penalties for repeated violations. This is no longer an issue that can be postponed—the initial judgment effectively determines the scope of liability. How Decent Law Firm Assists – When a Wage Claim Attorney Gets Involved, Outcomes Change Decent Law Firm does not approach unpaid wage cases as simple complaints or emotional disputes. We systematically analyze working hours, various wage components, and severance calculations, and design response strategies that comprehensively consider civil, criminal, and administrative procedures. The role of a wage claim attorney goes beyond drafting documents. It involves determining which procedures to pursue, at what timing, and how to respond at each stage to maximize the likelihood of recovery. Unpaid wage cases are ultimately a race against time. While hesitation and worry persist, the situation can quickly become more unfavorable. Do not take this issue lightly. Before it is too late, seek the assistance of a labor law specialist at an early stage.
2026-01-06 Naver Blog -
Blogs
Virtual Asset Service Providers Can Now Become Targets of Criminal Investigation
Why Was I Classified as a “Virtual Asset Service Provider”? Many people perceive their conduct as nothing more than simple promotion, operational support, referral activity, customer assistance, or community management. Some believe they never held or managed virtual assets themselves, and that a separate party operated the platform. However, in practice, this perception is often not accepted as it stands. Investigative authorities do not focus on labels or contractual form, but on the degree of actual involvement. What matters is how one contributed to attracting investors, how the activity was connected to the revenue structure, and whether such conduct was carried out continuously or repeatedly. At this stage, many individuals first experience a sense of crisis, realizing, “I didn’t know this could be illegal to this extent.” In reality, many virtual asset–related cases begin not with clear criminal intent, but with poor judgment and misunderstandings about the structure of the business. This article aims to provide practical guidance for those facing similar concerns. Please read the following carefully, as it outlines key issues that should not be overlooked. Legal Definition and Criteria for Determining a Virtual Asset Service Provider 1) Statutory Definition Under Article 2(1)(h) of the Act on Reporting and Using Specified Financial Transaction Information and Article 2(2) of the Virtual Asset User Protection Act, a “virtual asset service provider” refers to any person who, as a business, engages in activities related to virtual assets, including ① buying or selling, ② exchanging, ③ transferring, ④ safekeeping or managing, or ⑤ brokering, arranging, or acting as an intermediary. Pursuant to Article 7 of the Specified Financial Information Act, virtual asset service providers must report to the head of the Financial Intelligence Unit (FIU). Any person who conducts virtual asset transactions as a business without filing such a report is subject to criminal penalties of up to five years’ imprisonment or a fine of up to KRW 50 million (Article 17(1) of the same Act). 2) Standards Established by Supreme Court Precedent In determining whether a person qualifies as a virtual asset service provider, the Supreme Court has held that the key inquiry is whether the individual continuously and repeatedly engages in virtual asset transactions for profit. This determination must be made reasonably, based on social norms, by comprehensively considering factors such as the purpose, type, scale, frequency, duration, and manner of the transactions (Supreme Court Decision, December 12, 2024, Case No. 2024Do10710). The Court further clarified that a general user who continuously and repeatedly trades or exchanges virtual assets solely through an exchange for their own account and benefit would, absent special circumstances, be unlikely to qualify as a virtual asset service provider. However, a person who continuously and repeatedly conducts virtual asset transactions for the benefit of an unspecified number of customers or users, and receives compensation in return, may in principle be deemed a virtual asset service provider (Supreme Court Decision, September 11, 2025, Case No. 2024Do12420). 3) Practical Factors Considered in Investigations Investigative authorities prioritize substance over form. In practice, the likelihood of being classified as a virtual asset service provider increases when the following factors are combined: Access to or ability to manage investor funds or virtual assets Substantial involvement in transaction execution, operation, or intermediation A profit-oriented revenue structure, such as fees, performance-based compensation, or referral commissions Continuity, organization, and repetition of the activity Common Misunderstandings 1) “I Only Lent My Name” or “I Only Provided Technical Support” Such arguments are rarely accepted in practice. In criminal proceedings, courts focus not on formal titles or contractual arrangements, but on the actual performance of tasks and the allocation of profits. Where a conspiracy or joint participation is recognized, even a person who handled only part of the operations may be held jointly liable for the entire offense (Criminal Act, Article 30). 2) Overseas Exchanges, Foreign Corporations, or Offshore Servers Formal structures such as overseas exchanges, foreign entities, or relocating servers abroad do not, in themselves, constitute grounds for exemption from liability. Under Articles 3 and 6 of the Criminal Act, both Korean nationals and foreign nationals who commit crimes within the territory of the Republic of Korea are subject to Korean criminal law, and Korean nationals may also be subject to Korean law for crimes committed abroad. Accordingly, if a business structure targeting domestic users is identified, Korean criminal law may apply regardless of server location or place of incorporation. 3) “I Can File a Report Later” This assumption can lead to irreversible consequences. Article 17(1) of the Specified Financial Information Act imposes criminal penalties of up to five years’ imprisonment or a fine of up to KRW 50 million on those who conduct virtual asset transactions as a business without filing a report. Such violations cannot be cured through ex post reporting. Moreover, to file a valid report as a virtual asset service provider, requirements such as ① obtaining Information Security Management System (ISMS) certification, and ② securing real-name verified deposit and withdrawal accounts must be satisfied (Article 7(3) of the same Act). Even if these requirements are met at a later stage, criminal liability for previously unreported business operations cannot be avoided. This is therefore a matter that should never be taken lightly. Decent Law Firm’s Assistance – Why Immediate Intervention Is Critical The most dangerous scenario in virtual asset cases arises when investigative authorities have already structured the case internally on the assumption that the individual is a virtual asset service provider, while the individual themselves remains unaware of this classification. In such circumstances, explanations offered may function not as a defense, but as confirmation. Decent Law Firm’s approach begins by dismantling and reassessing the structure of the case. We separate operational, promotional, technical, and financial elements by function and timeline, reorganizing the actual scope of involvement and examining whether the classification as a service provider itself can be contested. At the same time, we assess whether there is room to avoid designation as a principal or accomplice, and how far criminal liability may extend. Beyond criminal defense, we also evaluate long-term administrative risks, including FIU sanctions and future reporting restrictions. At this stage, the need for professional intervention is clear. A single misstep can lead to irreversible consequences. If you have already been contacted by authorities or informed of a potential change in your legal status, this is not a matter to assess on your own. In virtual asset service provider cases, the initial response strategy effectively determines the outcome. If you are reading this, you are still at a point where a strategic response can be formed.
2026-01-06 Naver Blog -
Blogs
If Recovering Losses from a Copy Trading Scam Is Urgent
1. How Copy Trading Scams Typically Begin Copy trading scams often start by gaining investors’ trust through phrases such as automated trading, professional management, or profit mirroring. Statements like “you don’t need to trade yourself” or “just follow a verified account” appear to reduce the burden of investment decisions. In fact, small profits may be generated in the early stages, making the scheme seem like a legitimate investment. However, after a certain period, a recurring pattern of inducing additional deposits begins. As the invested amount increases, withdrawals are delayed. Investors are asked to prepay fees or accept changing conditions, followed by loss of contact or restricted account access—at which point the damage becomes final. Unlike a simple investment loss, cases suspected to involve copy trading scams hinge on whether there was an intent to deceive investors and unlawfully obtain financial gain. Because this determination is made by comprehensively examining the transaction structure, fund management practices, and the operator’s conduct, becoming a victim without having the opportunity to explain one’s position is far from uncommon. 2. The Core Structure That Makes It Look Like a Legitimate Investment Copy trading scams are often highly sophisticated in appearance. They are designed to resemble lawful investment services through real-time trading screens, screenshots of profit verification, and performance graphs. Some even use interfaces similar to actual exchanges to eliminate suspicion. However, there is a clear gap between the structure perceived by the investor and the way the system is actually operated. Whether this discrepancy constitutes a violation of the duty to disclose material information or amounts to deceptive conduct depends on the specific facts of each case. If there is a material inconsistency between how the investment structure was explained and how it was actually operated—and that inconsistency influenced the investor’s decision—it may serve as a key basis for establishing fraud. 3. The Three Questions Victims Ask Most Frequently Q1. Can it still be considered fraud even if I actually made profits? Yes. Initial profit payouts are often used to build trust and induce additional deposits. The key issue is not whether profits occurred, but how those profits were generated. Q2. The account was in my name—can this still be considered fraud? What matters more than the account holder’s name is who actually controlled the trades and the funds. If the operator effectively controlled the transactions, it may be difficult to view the activity as a normal investment. Q3. When should I consider legal action if withdrawals are blocked? Once withdrawal conditions are repeatedly changed or additional payments are demanded, delaying a response is risky. If this is accompanied by avoidance of contact or account restrictions, immediate legal assessment is required. 4. How Decent Law Firm Provides Assistance Decent Law Firm does not treat copy trading scam cases as mere investment disputes. From the earliest stage, we focus not only on individual losses, but on the overall transaction structure and fund flows. We organize legal issues based on the substance of the investment method, the operator’s level of involvement, and indicators of fund control. Based on this analysis, we assess the feasibility of criminal complaints and investigation responses, while also considering parallel recovery measures such as civil damages claims or restitution of unjust enrichment. In copy trading scam cases, outcomes vary significantly depending on the initial response. Drawing on extensive experience with virtual asset and automated trading matters, we provide clear, practice-oriented strategies that reflect the key points investigators focus on. Accurately identifying the structure is what ultimately determines the direction of the case.
2026-01-05 Naver Blog -
Blogs
If You Need Assistance from a Labor Law Specialist, Read This Carefully
1. In Labor Disputes, a Single Misstep Can Alter the Course of Your Life Labor disputes are not merely “disagreements with an employer.” An unjust dismissal or excessive disciplinary action can lead to permanent career disruption. Unpaid wages may escalate into criminal complaints or civil litigation. In cases involving serious industrial accidents, business owners or executive officers may face criminal liability under the Serious Accidents Punishment Act (Article 2, Paragraph 9 of the Act on Punishment of Serious Accidents, etc.). In particular, labor disputes cannot be resolved by reviewing the Labor Standards Act alone. Multiple statutes operate simultaneously, including the Trade Union and Labor Relations Adjustment Act, the Occupational Safety and Health Act, and the Serious Accidents Punishment Act. Depending on the initial response strategy, administrative sanctions, criminal liability, and civil damages risks can compound rapidly. The most dangerous decision at this stage is thinking, “I’ll try to handle this on my own.” The anxiety and pressure you are feeling right now are not excessive. Once the direction of a labor dispute is set incorrectly, it is extremely difficult to reverse—and the consequences are far heavier than most expect. This is why early involvement of a labor law specialist is often the decisive starting point. 2. If Any of the Following Apply, You Are Already in the Middle of a Labor Dispute Labor disputes do not occur only in exceptional cases. If any of the situations below apply to you, your circumstances are likely already subject to legal evaluation. You have received notice of unfair dismissal or disciplinary action, or you are being pressured to resign Wages, severance pay, or overtime/night/holiday pay have not been properly paid You are facing issues related to workplace harassment or sexual harassment, or an internal investigation is imminent You are classified as a freelancer or platform worker and are denied protection under the Labor Standards Act due to the contract structure Liability issues have arisen following an industrial accident You have received notice from the Ministry of Employment and Labor (local labor office or branch) regarding a complaint investigation, labor inspection, or criminal case initiation Although these cases may appear similar on the surface, the applicable laws and standards of proof differ significantly. Missing the right timing or choosing the wrong strategy can leave adverse records, which may hinder you throughout all subsequent proceedings. At this stage, the role of a labor law specialist is not merely that of a representative, but rather a coordinator who determines how far legal risk can be controlled. 3. Common and Critical Mistakes Repeated in Labor Disputes This section addresses recurring errors frequently seen in practice. Typical examples include responding emotionally and leaving legally disadvantageous messages through texts or messaging apps, or filing complaints before labor authorities without adequately organizing facts and evidence. Another frequent mistake is choosing the wrong order among criminal, administrative, and civil procedures, thereby narrowing one’s own legal position. These errors may seem minor, but they can lead to irreversible consequences. This is precisely why early involvement of a labor law specialist is essential. 4. How Decent Law Firm Provides Support – Controlling Labor Risk Decent Law Firm does not approach labor cases as isolated disputes. We structure evidence with investigations and litigation in mind, and design the overall case flow through procedural risk analysis at each stage. In particular, cases are led by Attorney Junhyung Park, who is also a Certified Labor Attorney, with extensive experience in both major law firm labor teams and labor consulting firms. This ensures a consistent and integrated approach where legal and labor issues are not treated separately. Drawing on experience representing both employers and employees, we provide realistic options tailored to each case, while managing complex risk factors linked to labor management, accounting, and industrial accident matters. Our goal is not to offer abstract explanations, but to deliver response strategies that lead to tangible results for clients facing anxiety and pressure due to labor issues. Labor disputes can escalate into irreversible burdens the moment the initial direction is misjudged. For this reason, professional control from the very beginning is essential. Decent Law Firm is committed to providing tailored, controllable solutions—focused not on inflaming disputes, but on managing them strategically for each client’s specific situation.
2026-01-01 Naver Blog -
Blogs
If You Are a Victim of Telegram Crypto Scams—Read This Carefully
1. How Telegram Crypto Scams Work & Common Tactics Telegram itself is merely a messaging app. The scams exploit anonymity, closed private groups, and bots to deceive victims and induce mistakes. In practice, perpetrators use false information or exaggerated profit promises to mislead victims into making incorrect decisions and then misappropriate their assets. They often rush decisions with phrases like “signal room,” “VIP,” “inside information,” “kimchi premium,” “airdrop,” or “high-yield staking,” following a recurring pattern: deposit inducement (deception) → withdrawal restrictions (retaining proceeds and concealing losses) → requests for additional payments (secondary deception) → disappearance (evidence destruction and flight). Legally, fraud can already be established at the moment of the initial deposit inducement. Subsequent stages may constitute a continuation of the offense or separate counts of fraud. Common scam types include: Signal-room schemes: Promising “multiple-X returns” or “stop-loss lines,” then charging membership or commission fees. Fake exchanges/apps: Luring users via links, showing fake profits, then blocking withdrawals. Advance withdrawal fee schemes: Demanding extra transfers for “fees,” “taxes,” or “KYC costs” before withdrawal. Wallet connection/signature scams: Inducing wallet connections or signatures under the guise of verification or airdrops to drain assets. OTC direct-deal scams: Promising USDT exchange or similar services, taking the transfer, then cutting contact. 2. Telegram Crypto Scam Red Flags The more of the following that apply, the higher the likelihood of deception: Guaranteed principal or profits. Pressure to decide quickly and discouragement of external verification. Claims that additional deposits are required to withdraw. Vague or unverifiable exchange/project information; difficulty confirming official channels. Requests to transfer funds to third-party accounts or personal wallet addresses. Instructions to delete chats, prohibit screenshots, or otherwise avoid leaving evidence. 3. What to Do Within 24 Hours & How to Secure Evidence First, stop all additional transfers immediately. Claims like “withdrawal will be released once you pay the fee” often lead to secondary losses. Preserve evidence: Telegram chats can be auto-deleted or removed by the other party. Immediately save screenshots, screen recordings, and exported chats for group rooms, DMs, announcements, and instructions. Collect evidence: Counterparty IDs, room links/names, inducement messages, deposit/withdrawal records, TXIDs, wallet addresses, timestamps and amounts, and KRW transfer records (recipient name and account). Create a timeline: Summarize on a single page “when–who–what was said–where–how much was sent.” Immediate actions: KRW transfers: Contact the relevant financial institution at once to request payment suspension for suspected scam accounts pursuant to the Electronic Financial Transactions Act. Upon report, the institution should promptly suspend payments where scam use is suspected. Crypto transfers: As virtual assets are not directly covered by the Act, contact the relevant exchange immediately to request withdrawal blocking under its terms, and file a report with investigative authorities to seek exchange cooperation and on-chain tracing. Parallel legal steps: Criminal complaint: File promptly for fraud (Criminal Act Art. 347) to enable investigation, suspect identification, and asset tracing. Civil action: If the perpetrator’s identity and assets can be identified, consider a damages claim (Civil Act Arts. 750, 751) and pre-judgment attachment to prevent asset dissipation. Recovery options: Consider compensation orders within criminal proceedings or applications for crime-victim relief funds, where applicable. 4. How Decent Law Firm Can Help Decent Law Firm structures the facts to identify key deception points and fund flows required for complaints and petitions. We systematize chat records, transaction histories, and wallet movements into evidentiary packages aligned with investigative tracing and recovery procedures, while assessing the practicality of civil measures such as attachments and damages claims to maximize cost-effectiveness. Above all, we focus on preventing secondary losses at the most vulnerable stage—additional payment inducements—by providing clear, timely guidance. If you have been affected, we encourage you to seek advice before it’s too late.
2026-01-01 Naver Blog
