Financial Sector Hacking Prompts Financial Authorities to Postpone Second Phase of Network Separation Regulation Easing Selection

Second Phase of Selection Scheduled for October 7 Temporarily Postponed
Stance on Easing AI Utilization Regulations Maintained

The financial authorities have decided to temporarily postpone the selection of financial institutions for the second phase of network separation regulation easing, which was scheduled for October 7, due to the recent series of hacking incidents affecting major banks and financial companies.

According to the financial sector and regulatory authorities on October 6, the Financial Services Commission made this decision in order to focus administrative resources on responding to recent breaches and data leakage incidents within the financial sector. The Commission also believes it is necessary to monitor the situation going forward before proceeding further.

Previously, the financial authorities had been gradually easing network separation regulations, allowing financial companies to use generative artificial intelligence (AI) for security purposes. The intent was to enable AI-driven defense against the rapidly evolving threat of AI-based hacking.

Accordingly, ten financial companies were selected in the first phase this past June to benefit from temporary regulatory relief, and additional financial institutions were originally set to be selected on October 7 for the second phase. However, as security concerns have spread across the financial industry, the authorities have decided to postpone the plan. This follows a series of breaches and data leak incidents reported since September 27 at institutions including KB Kookmin Bank, Shinhan Bank, Hana Bank, BNK Busan Bank, Yegaram and Welcome Savings Banks, as well as Hyundai Capital.

Nevertheless, the financial authorities have stated that the postponement of this schedule does not affect their overall stance on easing network separation regulations. Under the principle of “using AI to defend against AI,” they will continue to pursue regulatory relaxation for financial companies that possess the necessary response capabilities.

This content was produced with the assistance of AI translation services.