Financial Authorities: "Preemptive Measures for Network Separation and Remote Work by Financial Firms Due to COVID-19 Impact"

On the 7th, remote work via remote access was permitted through a 'Non-Action Opinion Letter'
Continuous monitoring of telecommuting status of financial company IT staff
Reviewing rationalization of network separation regulations to prepare for emergencies and changes in work environment

On the 26th, KOSPI opened at 2,064.07, down 39.54 points (1.88%) from the previous trading day due to concerns over the spread of COVID-19. Employees are working in the dealing room of Hana Bank in Jung-gu, Seoul. The won-dollar exchange rate started at 1,216.5 won, up 6.2 won from the previous trading day. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kangwook Cho] Financial authorities announced on the 26th that they have taken preemptive measures to prevent work disruptions at financial companies, such as network separation and allowing remote work, in response to the spread of the novel coronavirus infection (COVID-19).

According to the Financial Services Commission and the Financial Supervisory Service, the current "Electronic Financial Supervision Regulations" require financial companies to establish a network separation environment to prevent hacking and other financial accidents.

Additionally, exceptions to network separation are recognized considering cases where remote access by data center staff is necessary under the financial company’s own "emergency measures." Network separation refers to a financial security regulation that separates a financial company’s communication lines into business use (internal network) and internet use (external network) to prevent cyberattacks and information leaks.

However, there have been concerns about whether such exceptions apply to the work processing of financial company headquarters and branch office employees beyond data center staff.

In response, the financial authorities clarified on the 7th, through a "non-action opinion letter" reply to the Korea Financial Investment Association, Citibank, and others, that general employees are also allowed to work remotely via remote access in preparation for the spread of COVID-19 and the possibility of home quarantine for infected employees. They added that other financial companies were also informed through sector-specific associations to respond promptly and flexibly based on the contents of the non-action opinion.

The non-action opinion letter is a document in which the head of the Financial Supervisory Service responds on whether or not to take future sanctions or other measures based on laws and regulations regarding actions that financial companies intend to perform.

The financial authorities explained, "According to the non-action opinions, banks, financial companies, and financial public institutions are implementing plans such as securing substitute workers and alternative workplaces to prepare for the loss of key function personnel, as well as remote work systems, as stipulated in their own 'emergency measures' including business continuity plans."

Furthermore, when working remotely via external remote access, internal control procedures are followed and security measures such as the use of virtual private networks (VPN) are applied to prevent risks such as hacking and information leaks.

The financial authorities will continuously monitor the remote work situation of financial company data center employees related to COVID-19 and will thoroughly respond to ensure that financial companies execute their own emergency measures without disruption even in emergencies, preventing any work stoppages.

In particular, they plan to review ways to rationalize network separation regulations so that financial companies can flexibly respond to emergencies and changes in working environments like this time.

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