The "Butter-Free Butter Beer" False Advertisement Case

 

Multiple news sources have reported that Park Yong-In, the CEO of Virtue Company and a member of the trio Urban Zakapa, received a suspended sentence on February 18, 2025, for false advertisement regarding "Butter Beer." He was sentenced to eight months in prison, suspended for two years, and the company was fined KRW 10 million.

The court pointed out that despite the product not containing any butter, it was advertised with prominent use of the term "BEURRE" (French for butter), suggesting a butter base, which misled consumers.

The court further condemned the actions for undermining consumer trust and disrupting fair trade practices, noting that even after the charges were filed, a false statement was issued claiming all products now included butter.

This case serves as a cautionary reminder for those doing business in Korea about the critical importance of regulatory compliance in marketing products and services.

If you have any question regarding this case, please feel free to contact us at www.openvisakorea.com.



DeepSeek Update in South Korea

 



1. Following the launch of DeepSeek's gobal services in South Korea, the Korean Personal Information Protection Commission (PIPC) sent an official inquiry to the company’s headquarters regarding the collection and processing of personal data. Also, the PIPIC conducted its own analysis and identified certain inadequacies in DeepSeek’s privacy policy in light of South Korea's privacy protection laws (‘privacy laws’).

2. DeepSeek has appointed a local representative in South Korea and also acknowledged that during the process of launching its global services, there was some oversight regarding the privacy laws.

3. Given the need for significant time to ensure full compliance with the privacy laws, the PIPC advised that a temporary suspension of the DeepSeek service was necessary to prevent the spread of further concerns. In response, DeepSeek has suspended new downloads of its app on the app marketplaces in South Korea since 6:00 p,m. on February 15th.

4. During the suspension period, the PIPC will closely monitor DeepSeek’s data processing practices and ensure that the service aligns with the privacy laws.

5. In the upcoming conclusion of this case, the PIPC plans to:

a. Provide guidelines (in the form of a checklist) for foreign AI developers to ensure they assess their services' compliance with the privacy laws before launching in South Korea;

b. Propose amendments to the privacy laws to introduce specific provisions for AI technologies and enhanced enforcement measures for foreign businesses; and,

c. Strengthen international cooperation with other countries' regulatory bodies. This will be further detailed at the upcoming Global Privacy Assembly (GPA) in Seoul, Korea in September 2025.

Should you have any question or comment, please feel free to reach out at openvisakorea.com.