Kim Byoung-hwan (김병환), chairman of the Financial Services Commission, said he will soon flesh out and announce a plan to fully lift network separation for financial companies with sufficient AI and security capabilities. He cited limits to relying only on a closed security system centred on network separation as AI-based cyber attacks become a reality.

In opening remarks at a July 10 event marking Information Security Day 2026, Kim said, "We can no longer keep up with the speed of AI attacks by closing networks, restricting access and responding after the fact as in the past."

"As attackers use AI to find vulnerabilities and set attack paths, we also must use AI to detect anomalies faster, identify vulnerabilities and respond immediately," he added.

The commission has been implementing emergency easing measures on network separation since June for AI security tests. It plans to flexibly improve eligibility standards and details so more financial companies can take part.

It has also prepared liability exemptions and guidelines to ease the burden on financial companies as they carry out AI security tests and security patches. The measures aim to prevent security checks and emergency patches from being delayed due to the possibility of minor system failures.

Kim said, "I will also soon flesh out and announce a plan to fully lift network separation for financial companies with sufficient AI and security capabilities."

Easing network separation rules is seen as a key task for expanding AI use in finance and shifting security systems. The commission is expected to include specific eligibility standards and requirements, and management systems, in follow-up measures.

The commission is also pushing to strengthen accountability for hacking incidents. It plans to seek parliamentary passage of amendments to the Electronic Financial Transactions Act that include introducing punitive penalty surcharges and enforcement fines, strengthening the authority of chief information security officers, and expanding consumer disclosures.

It is also preparing to enact a Digital Finance Safety Act to respond to increasingly sophisticated hacking crimes. The aim is to reduce blind spots in financial security and encourage constant information security management and investment by financial companies.

Kim also urged the financial sector to make security investments and decisions at the CEO and board level.

"Steady and sufficient security investment and staffing, constant monitoring in preparation for hacking, and mock drills, along with CEO- and board-level attention and proactive decision-making across all security work, are the key to bringing real change on the ground," he said.