The Korea Federation of Banks will build an AI-based advertising review system, the first among financial industry associations. It aims to use AI to improve the efficiency and accuracy of reviews and strengthen internal control capabilities in the banking sector.

The federation said on Monday it signed a contract on May 28 with AI company Upstage to build an "AI advertising review system for the banking sector." It said it made the move because advertising types have diversified as partnerships with non-financial industries have expanded, requiring a more precise review system than before.

Through the system, the federation plans to check in advance for potential regulatory violations that could occur during the ad production stage and strengthen the financial consumer protection framework.

The new system will apply AI technologies including large language models (LLM), optical character recognition (OCR) and retrieval-augmented generation (RAG). Key functions are "AI advertising review" and "financial knowledge-based search (Q&A)."

Upstage will be responsible for developing the technology. Upstage is a South Korean AI company that develops enterprise AI solutions and large language models.

Cho Yong-byoung (조용병), chairman of the federation, said, "The introduction of this AI system is a turning point that raises the qualitative level of advertising reviews and overall compliance work in the banking sector," and added, "As shared infrastructure used together by the Korea Federation of Banks and member banks, we will create a trusted financial environment."