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FSS urges banks to build AI internal control systems

South Korea\'s Financial Supervisory Service urged banks to build internal control systems aligned with the expanding adoption of AI, calling for governance and control standards to manage hard-to-predict risks in advance. The watchdog held an internal control workshop in Seoul attended by about 170 officials from eight bank holding companies and 20 banks. It also shared findings from governance checks and internal control reviews, citing cases of debtor rights violations and calling for tougher follow-up inspections on business loans.