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.

South Korea will partly expand the scope of in-person services allowed for internet-only banks while keeping the principle of non-face-to-face operations. The Financial Services Commission approved measures to allow exceptions for consumer protection and inclusive finance, including debt restructuring support, corporate loan screening interviews, and checks for forged documents. It also allowed in-person verification tied to mortgage and jeonse loans, collateral inspections and certain administrative limits. The three internet-only banks must report plans in advance.