The Financial Services Commission held a meeting on AI transformation (AX) in the financial industry with officials from financial holding companies, card companies, electronic financial service providers, related organizations, and research institutions on June 18. At the meeting, officials shared the latest AI trends in the financial sector and discussed ways forward and future directions for the government and the financial sector. At today’s meeting, the FSC also introduced an updated version of the AI guidelines in the financial sector.
A Summary of Remarks by FSC Vice Chairman
FSC Vice Chairman Kwon Dae-young presided over the meeting and delivered opening remarks on the significance of AI transformation in the financial industry. Vice Chairman Kwon spoke about the potential of embracing AI agentic services in making financial services more productive, more inclusive, and more trustworthy, and suggested the following three key factors in designing a new framework for an era of AI transformation.
First, there needs to be a regulatory and supervisory framework that can ensure a level playing field, without any special advantage or disadvantage attached to the use of AI. Second, there needs to be clear standards established to make sure that innovation is sought responsibly. With AI having a greater impact on consumer decision-making, there needs to be clear responsibility and authority established for financial companies, and the issue of global regulatory consistency also needs to be considered to ensure fair competition abroad. Third, there needs to be preemptive risk management to effectively cope with AI-related cyber risks that can be unpredictable in terms of their speed and scale.
In addition, Vice Chairman Kwon also spoke about specific measures planned for establishing a new regulatory framework amid AI transformation. First, authorities will speed up the easing of the network separation requirement for financial companies’ AI cybersecurity purposes and seek to upgrade rules on the personal credit data consent system and data pseudonymization. Second, authorities will work to establish standards on AI behaviors. The guidelines on the use of AI in the financial sector being introduced today are part of this effort. Going forward, as AI agents are expected to player a greater role in the areas of making recommendations for financial products, subscribing to financial products, and making payments, authorities will seek to consider ways to prepare rules on the responsibility and authority of AI. Third, authorities will work to come up with ways to make use of AI to effectively supervise and oversee AI agents to ensure consumer protection against the issue of AI accountability and responsibility. Fourth, once these preparatory works are completed, authorities will carry out test operations in stages in a controlled setting through the financial regulatory sandbox program.
Key Details of Revised AI Guidelines in Financial Sector
The revised AI guidelines in the financial sector are self-regulatory guidelines providing seven specific principles on the use of AI for all financial companies (including fintech businesses). Individual companies are recommended to apply these guidelines on a discretionary basis considering the level of human and physical resources with which they are equipped, the scope of AI application, and the level of risk attached to the provision of service. However, the use of high-impact AI or others that are regulated under the Framework Act on the Development of Artificial Intelligence and the Creation of a Foundation for Trust should follow relevant regulatory requirements.
The following are seven specific principles on the use of AI in the financial sector.
a) Governance: The CEOs and executives of financial companies should pay keen attention to the development and use of AI and have in place specific roles and responsibilities organized.
b) Legitimacy: The use of AI should be in compliance with both financial and AI-related laws and regulations.
c) Means of assistance: At current stage, AI should be used as a means of assistance, which requires human supervision, and the ultimate responsibility for decision-making lies with the AI supervisor.
d) Credibility: The data and models used in developing an AI agent should be credible.
e) Financial stability: Potential risk to financial stability needs to stay minimized in all stages from AI designing to learning and so on.
f) Good faith: The use of AI should be in good faith, placing consumer interest as top priority.
g) Security: The use of AI should follow the establishment of security standards, and there should be mechanisms to continue to examine and upgrade these standards.
The AI guidelines in the financial sector are scheduled to go into effect on June 22, 2026. Along this line, the Financial Supervisory Service (FSS) and the Financial Security Institute (FSI) will each provide the AI risk management framework (RMF) in the financial sector and the AI security guidebook in the financial sector. In addition, an AI guidelines helpdesk will be made available to quickly assist financial companies with AI-related problems.
Further Plan
Based on the suggestions and opinions raised at today’s meeting, the FSC plans to review areas where regulatory reform is needed, seek AI risk management measures, and consider ways to conduct test operations on AI agents from the second half of this year.
* Please refer to the attached PDF for details.