News and developments
FSC Unveils Network Separation Improvement Roadmap - Expanding the Use of Generative AI and SaaS in the Financial Sector -
Background
Network separation policies, while effective in protecting customer information and trade secrets from various security threats, have become increasingly viewed as an outdated and overly restrictive regulation unique to Korea. These policies have been criticized for hindering the global competitiveness of the domestic financial industry, especially in the face of emerging technologies such as cloud computing and AI.
There have been persistent requests for regulatory improvements, citing significant operational inefficiencies for financial companies, hindrances to the adoption of new technologies, and difficulties in research and development due to network separation. In response, the FSC has developed and announced the Roadmap to improve network separation regulations and comprehensively reform financial security laws and systems in the medium to long term, pursuing a paradigm shift to find a new balance between innovation and security.
The Roadmap primarily focuses on: (1) allowing financial companies and electronic financial business entities (collectively, financial companies) to use generative AI; (2) significantly expanding the scope of cloud-based application usage; (3) improving the research and development environment for financial companies; and (4) advancing regulatory exceptions, including the implementation of a “Stage 2 Sandbox.” With the introduction of the Roadmap, it is expected that AI and IT development in the financial sector will be invigorated, and the utilization of financial data will significantly increase.
Key Points of the Roadmap
- Allowing the Use of Generative AI
- Expanding the Use of Cloud-Based Applications (SaaS)
- Improving Research and Development Environment
- Enhancing Regulatory Sandboxes