South Korea to Ease AI Network Rules for Financial Security

Seoul, South Korea – South Korea's financial regulators are set to relax strict 'network separation' rules for financial institutions, specifically to enable the use of artificial intelligence for enhanced cybersecurity. This decision comes in response to growing concerns that advanced AI models, such as Anthropic's 'Mythos,' could be exploited for sophisticated hacking attacks.

The Financial Services Commission (FSC) announced on June 24th that it would swiftly ease network separation regulations for the security-focused application of AI. This measure will primarily benefit 49 large financial companies, defined by total assets exceeding 10 trillion won or over 1,000 employees. Companies must apply for an exemption, which will be granted after an expert evaluation of their security management capabilities and AI utilization proficiency.

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Even with network separation, there are exceptions to allow external connections for smooth service operation. Currently, these external connection areas are managed directly by people, but in the future, we will allow AI to be used for efficient security checks and responses.

Currently, South Korean financial companies operate under stringent network separation principles, isolating internal business systems from external networks like the internet. While this policy, implemented after a 2013 system failure, aims to minimize hacking vulnerabilities, it has increasingly been seen as a barrier to innovation and the adoption of advanced technologies like AI. The emergence of AI capable of detecting previously unknown security flaws has intensified calls for regulatory flexibility.

Kim Tae-hoon, head of the FSC's Financial Security Division, explained that while some exceptions to network separation already exist for operational purposes, these are manually managed. The new policy will allow AI to efficiently manage security checks and responses in these areas. He also noted that South Korea is unique in its strict network separation rules, and adapting to the rapid pace of AI development requires such adjustments. The FSC is considering a broader relaxation for companies demonstrating strong security and AI capabilities, acknowledging that the current pace is insufficient for the rapidly evolving AI landscape.

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Globally, South Korea is the only country that applies network separation regulations like this. At the current speed, it is difficult to respond to the rapidly changing AI transition.