Dokyu-sang "Preparing AI Operation Guidelines for Financial Sector in Q2"

Digital Finance Council Meeting
Diagnosis of Financial Industry Risk Factors and Discussion on Artificial Intelligence (AI) Operation Methods

[Image source=Yonhap News]

[Asia Economy Reporter Park Sun-mi] The Financial Services Commission (FSC) plans to establish AI guidelines for the financial sector in the second quarter to accelerate digital innovation in the financial industry.

Do Gyu-sang, Vice Chairman of the FSC, said at the Digital Finance Council meeting on the 13th, "The digitalization of finance worldwide is an irreversible change," adding, "While positive effects are expected, such as expanded choices for financial consumers and a more efficient transformation of the financial industry, policy efforts are needed to prepare for new risk factors."

He stated that management will be strengthened regarding the impact of the increased entry of new players into the financial industry on financial stability. He explained, "We will closely monitor changes in business methods and potential consumer damages due to intensified competition between big tech companies and financial firms, as well as carefully examine the possibility of deterioration in the soundness of financial companies."

He also said that a foundation will be established to ensure the safe use of new technologies. This means securing transparency and fairness in the utilization of innovative technologies such as AI and thoroughly inspecting the concentration phenomena that may arise from multiple financial companies using similar algorithms. Furthermore, thorough preparations will be made for the increase in risks in the financial sector. He said, "We will monitor risk factors such as risk transfer or shadow banking in the process of non-financial companies engaging in financial business."

Regarding the use of AI in the financial sector, policies will be prepared focusing on three aspects.

Vice Chairman Do said, "We will build the necessary big data infrastructure to support AI utilization in the financial sector and create a testbed to verify the validity of AI algorithms," adding, "Since AI can raise fairness issues such as decision-making bias, we will also develop operational guidelines to harmonize these aspects." He continued, "Based on the results of this research project, we plan to prepare AI guidelines for the financial sector in the second quarter and gradually establish practical guidelines for each financial industry sector within the year."

Vice Chairman Do also stated that the Digital Finance Council will be reorganized around four subcommittees for in-depth discussions on each task. Through the Platform and Open Banking subcommittee, infrastructure for fintech activation will be created, and the Regulatory Innovation subcommittee will promote the advancement of the financial regulatory sandbox. Additionally, the Data Sharing subcommittee will prepare measures to revitalize the data economy, while the Financial Security subcommittee will establish a safe financial innovation system.

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