Finfluencer Stock Picks Face Disclosure Push on Ads and Holdings

Financial authorities have begun preparing a framework as concerns rise over investor damage linked to finfluencer stock recommendations during a strong stock market. Even when operators are registered as similar investment advisory businesses, investors often cannot tell whether a post was sponsored, whether the influencer holds the recommended stock, or whether front-running occurred. This opaque structure is being cited as a problem. In Europe, related disclosure duties have been made mandatory, drawing attention to the need for similar disclosure of advertising and holdings in Korea. If introduced, the rules are expected to improve transparency in finfluencer recommendation content and strengthen investor protection. Source: mk.co.kr