Kibo: "Overhauls AI and Data Regulations...Introduces Full-Lifecycle Risk Management"

Executive Managing Director Named CAIO to Accelerate AX

Korea Technology Finance Corporation said on November 9 that it will overhaul and implement its internal regulations on AI and data to ensure the reliability and safety of artificial intelligence (AI).

The overhaul is intended to address the implementation of AI-related laws, including the Framework Act on the Development of Artificial Intelligence and the Establishment of a Trust-Based Foundation, and to consolidate AI- and data-related provisions scattered across existing internal standards and guidelines into a single management system.

First, the corporation has fully revised its “Standards for Handling Work Related to Projects Based on Artificial Intelligence and Data,” and updated the related detailed work procedures and ethics and operations guidelines. The Digital Innovation Committee has been reorganized as the Artificial Intelligence Innovation Committee, and the executive managing director has been designated as chief artificial intelligence officer (CAIO) to oversee the artificial intelligence transformation (AX) strategy and AI risk management.

Headquarters of Korea Technology Finance Corporation. Korea Technology Finance Corporation.

The corporation has also established a risk management system covering the entire process, from AI development and adoption through use and post-deployment management. Based on risk assessment results, AI systems are classified into four grades, ranging from ultra-high risk to general risk. Management responsibilities have been clarified by requiring Grade 1, the ultra-high-risk category, to be approved by the Artificial Intelligence Innovation Committee; Grade 2, the high-risk category, by the CAIO; and Grade 3 by the head of the department in charge before operation.

AI ethics standards have also been revised around six core principles: public interest, fairness, transparency, accountability, safety, and privacy protection. Procedures to protect users and ensure transparency have also been strengthened, including advance notice to users of high-impact AI and generative AI services that AI is being used.

Building on this regulatory overhaul, Kibo plans to improve the effectiveness of its AI risk management system and expand the use of AI across technology evaluations and customer services, working to drive innovation in technology finance and enhance public convenience.

Kwon Hyung-taek, chairman of Korea Technology Finance Corporation, said, “We will continue to expand the use of AI through systematic risk management and responsible operations, and fulfill our role as a comprehensive technology innovation support institution that underpins the innovative growth of small and venture businesses.”

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