Temporary Easing of Network Separation Rule Available for More Financial Companies for AI Cybersecurity Purpose

The Financial Services Commission held a meeting on frontier AI and cybersecurity strategy with officials from the Financial Supervisory Service and the Financial Security Institute on September 3. At the meeting, officials discussed specific measures for the second phase easing of the network separation rule for financial companies.

For the second phase easing of the network separation rule, the eligibility criteria and the size of selected companies will be broadened up to include nonbank financial companies and electronic financial service providers, which will help to facilitate more financial companies to test frontier AI models to bolster their cybersecurity capacity.

The total number of eligible companies for the second phase testing is 75, an increase from 49 eligible entities for the first phase testing. The size of selected companies will also be increased to 15 entities from 10 companies previously. After preparing adequate internal control mechanisms, selected companies will be able to utilize frontier AI models and SaaS programs to identify and improve upon their own cybersecurity risks.

More specifically, the eligibility criteria will be eased from the current level of KRW10 trillion or more in total assets with a regular staff size of 1,000 or more to KRW2 trillion or more in total assets with a regular staff size of 300 or more. The chief information security officer (CISO) should not concurrently hold another information technology-related position within the company. There are 59 companies in total that currently meet these standards.