In the digital asset market, cooperation between traditional financial firms and virtual asset operators is continuing, broadening business overlap.

As Kakao Group speeds up building stablecoin wallet infrastructure, KakaoPay has completed a proof of concept and is preparing to expand related business.

In the United States, moves to institutionalise related business continued, including the OCC giving preliminary approval to two digital banks pursuing crypto custody and stablecoin business.

South Korean brokerages are also moving to expand digital assets into a new business area.

Hana Securities moved to cooperate on digital asset business with Upbit Global, and Samsung Securities expanded cooperation with BNY in global financial infrastructure and digital assets.

Coinone provided digital asset prices to Korea Investment & Securities' mobile trading system, broadening overlap between securities platforms and virtual asset services.

Korbit is also restarting as "DigitalX" and applying the Mirae Asset brand across the board, as more cases emerge of links between traditional financial firms and virtual asset operators.

Along with business expansion, the need to refine institutions continues to be highlighted. In particular, a point was raised that trading standards and investor protection devices should be put in place first to activate digital asset financial products.

The Democratic Party said it plans to prepare a Digital Asset Basic Act within this year and will soon hold a public hearing.

As the scope of digital asset business widens, legislative discussions are also under way to specify market discipline systems and investor protection standards.

• Kakao Group speeds up building stablecoin wallet infrastructure... KakaoPay completes PoC • From coin custody to stablecoins... U.S. OCC gives preliminary approval to two digital banks • Hana Securities cooperates with Upbit Global on digital asset business • Samsung Securities joins hands with BNY... expands cooperation in global financial infrastructure and digital assets • To increase digital asset financial products... "Trading standards and investor protection must come first" • Democratic Party: "Digital Asset Basic Act to be prepared within the year... public hearing soon" • Korbit to restart as "DigitalX" from the 16th... applies Mirae Asset brand across the board • Coinone provides digital asset prices to Korea Investment & Securities MTS... expands cooperation • Beyond fractional investment to bonds and funds... securities industry ramps up STO business

Not only in digital assets but also across platform finance, there are moves to expand business areas and reshape the competitive order.

In the online lending industry, voices have called for separate entry standards to prevent conflicts of interest before large companies and big platforms enter the market.

As an environment expands in which AI recommends financial products, issues around customer choice and product exposure standards are also emerging as new points of contention.

In the investment area, big tech firms are also continuing to expand financial services, including as Naver overhauled its securities page and joined competition among investment platforms.

As platforms' financial functions and influence grow, how to secure consumer protection and service reliability, as well as a fair competitive order, is also emerging as an important task.

Against this backdrop, Toss Payments saw 4,131 payment records for 1 merchant being accessed. The company explained it was not caused by hacking of its system.

As financial platforms broaden their business areas, related discussions are also expanding together, from entry standards and conflict-of-interest prevention to customer choice and security.

• 6 online lending firms: "Entry standards needed for large companies and big platforms... must prevent conflicts of interest" • "AI chooses financial products instead... financial competition will be reshaped around 'customer choice'" • Competition among 'investment platforms' begins in earnest... Naver also fully revamps securities page • Toss Payments: "Not system hacking"... 4,131 payment records for 1 merchant accessed

In the financial sector, there were also moves toward organisational change through changes in chief executives.

KB Financial Group selected Lee Jae-geun (이재근), head of division at KB Financial Group, as the final candidate for next chairman, meaning incumbent chairman Yang Jong-hee will not be reappointed.

The chairman nomination committee explained it chose Lee while stressing the need for change and generational replacement in this round of selection.

After being selected as the next chairman candidate, Lee presented system-based decentralisation as a direction for running the organisation. He outlined a structure in which the organisation and systems operate, rather than authority being concentrated in a specific individual.

He has also expressed an intention to actively respond to AI and digital changes, and attention is focused on what changes will appear in KB Financial Group's organisation and digital strategy going forward.

• Lee Jae-geun named KB Financial Group's next chairman... Yang Jong-hee not reappointed • Lee Jae-geun beats Yang Jong-hee... next KB Financial Group chairman stresses 'change and generational replacement' • KB chairman candidate Lee Jae-geun: "Run the organisation with system-based decentralisation... actively respond to AI and digital"

As digital transformation accelerates, the need to strengthen cyber security and internal controls continues to emerge as an issue in the financial sector.

Toss Payments explained that the recent case in which 4,131 payment records for 1 merchant were accessed was not caused by hacking of its system or an attack exploiting vulnerabilities. It said authentication information used on the merchant's payment-linked platform was exposed, and a third party used it to access payment records.

The Financial Supervisory Service recently convened chief information security officers in the financial sector to call for stronger responses to security incidents and stronger voluntary corrections. It also said it would take stern action against passive responses.

Woori Bank held a simulated hacking competition with the Financial Security Institute to identify security vulnerabilities that could occur in an actual service environment.

In the virtual asset industry, Bithumb ran an information security campaign after warning of malware damage claiming to be "fake AI automated trading".

Overseas, New York financial authorities are raising the level of supervision so they can impose fines on financial firms that perform cyber risk assessments poorly.

As financial services become more dependent on digital systems, moves to strengthen pre-emptive checks and risk assessments, as well as incident responses, are appearing both at home and abroad.

• Toss Payments: "Not system hacking"... 4,131 payment records for 1 merchant accessed • FSS convenes financial sector CISOs... stern action for passive voluntary corrections • Woori Bank and Financial Security Institute hold simulated hacking competition... identifies security vulnerabilities • Fines for poor cyber risk assessments... New York financial authorities raise supervision level • Bithumb warns of 'fake AI automated trading' malware... launches September information security campaign

As the stance of managing household loans continues, there were also moves to supplement institutions to support end-user demand and supply funding, and financially vulnerable groups.

Financial authorities are pushing to maintain overall household loan volume management while broadening exceptions for funding needed for housing supply and other uses.

In the National Assembly, discussions have begun in earnest to institutionalise a "basic financial right" that goes beyond access to finance to include debtors' recovery and self-reliance.

At the level of financial companies, iM Financial expanded support linked to transportation cards and financial education to help young people become self-reliant.

Consumer protection devices were also strengthened, with a system that automatically blocks financial transactions from the day after a death report applied across the entire financial sector.

• Broaden exceptions for supply funding while maintaining volume management... will loan regulations ease? • Beyond loans to recovery and self-reliance... discussions to institutionalise 'basic financial right' begin in earnest • iM Financial expands support for youth self-reliance... links transportation cards and financial education • Automatic block of financial transactions from the day after a death report... applied across the financial sector

Moves to hire in the second half and foster digital talent in the financial sector also began in earnest.

Banks are moving to secure talent by segmenting hiring fields from regional sales staff to specialists in AI and security.

Shinhan Bank changed its selection process by abolishing self-introduction essays and introducing AI collaborative interviews for hiring new employees in the second half.

The financial sector's talent strategy is shifting beyond simply expanding hiring to focus on securing and fostering people with AI and digital capabilities.

• Second-half hiring market for banks begins... from regional sales to AI and security, 'dense' • Shinhan Bank second-half hiring of new employees... abolishes self-introduction essays and introduces AI collaborative interviews • Welcome Financial to establish 'Digital Finance AI Department' with Soongsil University... operates master's programme for employees

Other major moves in the finance and fintech industries were also summarised.

KB Financial Group moved to cooperate with BS Group in productive finance areas such as renewable energy and AI data centres, and expanded global capital market data and technology links with Bloomberg. Shinhan Bank issued a 600 million euro green covered bond and secured orders worth 3.8 times the offered amount.

• KB Financial Group and BS Group cooperate in productive finance such as renewable energy and AI data centres • KB Financial Group and Bloomberg expand global capital market cooperation... data and technology links • Shinhan Bank issues 600 million euro green covered bond... orders 3.8 times the target amount

Hana Bank will expand financial cooperation with the Uzbek government and push to set up a local representative office within the year. Woori Financial Group opened a "Woori Neighborhood Oral Care Center" in Jeonju, expanding the region it supports, and Woori Bank, Woori Card and the National Pension Service moved to support asset management for people with dementia and developmental disabilities. Woori Bank will 추진 financial support worth 548.0 billion won after selecting 45 midsize firms in semiconductors, biotech and AX.

• Hana Bank expands financial cooperation with the Uzbek government... pushes to set up representative office within the year • Woori Financial Group opens "Woori Neighborhood Oral Care Center" Jeonju branch... expands support to regions • Woori Bank, Woori Card and National Pension Service support asset management for people with dementia and developmental disabilities • Woori Bank selects 45 midsize firms in semiconductors, biotech and AX... support worth 548.0 billion won

iM Bank, together with Daegu City and the Korea Credit Guarantee Fund, will push financial support worth 100.0 billion won for small and medium-sized firms in vulnerable industries. IBK Industrial Bank of Korea will run an eight-week local acceleration programme in Silicon Valley in the United States for five startups. Sh Bank delivered a marine environment fund raised through links with deposits and savings products, supporting marine conservation activities.

• iM Bank, Daegu City and Korea Credit Guarantee Fund provide financial support worth 100.0 billion won for SMEs in vulnerable industries • IBK Industrial Bank of Korea supports five startups' entry into Silicon Valley... eight-week programme in the United States • Sh Bank delivers marine environment fund linked to deposits and savings... supports marine conservation

KakaoBank launched a "Gold Saving" service that automatically buys gold over 26 weeks, expanding its investment product area. Kakao Pay Securities began stock trading services in the KakaoBank app, strengthening links in investment services among Kakao's financial affiliates.

• KakaoBank launches "Gold Saving" that automatically buys gold over 26 weeks • Kakao Pay Securities starts stock trading in KakaoBank app

Naver Pay expanded support coverage for local currency in "Npay Connect" to include Seoul Pay and Daegu Lo Pay. Naver fully revamped its securities page and began competing in earnest in the investment platform market. Toss Payments signed a strategic memorandum of understanding with Visa and moved to strengthen domestic and overseas payment competitiveness.

• Naver Pay expands local currency coverage for "Npay Connect"... supports Seoul Pay and Daegu Lo Pay • Competition among 'investment platforms' begins in earnest... Naver also fully revamps securities page • Toss Payments signs strategic MOU with Visa... strengthens domestic and overseas payment competitiveness

Toss and PFCT will cooperate to advance alternative credit scoring and push to expand its application in credit screening by financial firms. Kookmin Bank built in-person MyData for the Credit Recovery Committee, creating an application case in the public sector. Hecto Financial provided "Point Damore" to Cafe24 so card points can be used for payments.

• Toss and PFCT cooperate to advance alternative credit scoring... applied to credit screening by financial firms • Kookmin Bank builds in-person MyData for Credit Recovery Committee... first application in public sector • Hecto Financial provides "Point Damore" to Cafe24... pay with card points