As financial companies expand use of AI, South Korean regulators are sharpening oversight of security and internal controls. The Financial Services Commission plans to exempt sanctions for minor system disruptions during AI security tests or emergency patches if conditions are met, while requiring swift recovery and consumer protection. The Financial Supervisory Service will intensively inspect IT basic controls in the second half and urged banks to build AI internal-control systems. A Woori Bank data leak and broader market and industry moves have also highlighted digital risks.

Jeju Bank has filed a patent application for a core technology used in its AI-based corporate cash management service, AI CFO. The technology combines companies’ ERP data with financial data to forecast future cash inflows and outflows and ease cash management burdens for small and medium-sized enterprises. The bank said it is the first regional bank to file a patent for an AI-based future cash flow forecasting model.