Regulator vows sweeping review of financial sector's cybersecurity infrastructure

On network separation, chairman says: 'To fight AI, you have no choice but to use AI'

FSC Chairman Lee Eok-won answers lawmakers' questions at a National Assembly audit of the Financial Services Commission and related agencies held Thursday. [Yonhap]
FSC Chairman Lee Eok-won answers lawmakers' questions at a National Assembly audit of the Financial Services Commission and related agencies held Thursday. [Yonhap]

FSC Chairman Lee Eok-won said Thursday that the financial sector's response to AI-based hacking was "severely lacking even in the most basic areas," even as threats continue to grow.

Speaking at the National Assembly's Political Affairs Committee national audit, Lee signaled sweeping regulatory reforms after a lawmaker noted that the Korea Financial Security Institute had last year urged financial institutions to accurately identify and manage their assets through its "Frontier AI Security Threat Response Guidelines for the Financial Sector" — and questioned whether authorities had failed to follow up.

Lee said the recent AI hacking incidents would prompt a comprehensive review of the financial sector's response systems and overall infrastructure. "It seems we need to thoroughly inspect and overhaul things," he said.

When Democratic Party of Korea lawmaker Lee Gang-il asked whether the FSC had anticipated AI-assisted hacking, Lee said, "The environment has now changed completely."

Financial authorities are reviewing the response systems of banks and other industry players while also pursuing deregulation of network separation rules for security purposes. Earlier Thursday, Lee told Democratic Party lawmaker Park Min-gyu that "to counter AI, you ultimately have no choice but to use AI," signaling the FSC's intent to ease the restrictions.


hyuk@heraldcorp.com