New Delhi, July 8 -- South Korea began enforcing a law Tuesday that allows steep punitive damages against news outlets and social media influencers for spreading false information as journalist groups warned it could chill public discourse and invite censorship.

Journalists and civil liberties groups say the vaguely worded law fails to clearly define what information it prohibits and lacks adequate safeguards for the media, warning it could potentially discourage critical reporting about government officials, politicians and large businesses.

The law allows courts to award damages of up to five times the proven losses against news organizations and large social media channels, including YouTube creators, that circulate illegal, false or...