Republic of Korea: Fair Trade Commission announced investigation into illegal practices by online advertising agencies

On 16 April 2025, South Korea’s Fair-Trade Commission (FTC) announced an investigation into seven online advertising agencies suspected of illegal practices. During a quarterly review conducted by the Online Advertising Illegal Practices Response Task Force, the FTC decided to refer these agencies for further investigation. The actions of these agencies allegedly involve impersonating large platforms or public institutions to secure contracts and designating low monthly fees before charging full contract sums without consent. Additionally, they are accused of failing to deliver promised search visibility or revenue guarantees and ghosting requests for contract termination while imposing excessive penalties up to 74% of the contract value.