[Digital Today reporter Ji-young Lee] South Korea’s Financial Services Commission will launch a second emergency easing of network separation rules to expand security tests in the financial sector using artificial intelligence. It will broaden participation beyond large financial companies to include the non-bank financial sector and electronic financial service providers.

The FSC said on Wednesday it confirmed detailed measures for the second emergency easing after holding the fifth meeting of the "Frontier AI Situation Response Task Force" with the Financial Supervisory Service and the Financial Security Institute, among others.

The second test will accept applications from 75 companies, up 26 from 49 in the first round.

The number of companies to be selected will also rise from 10 to up to 15. Selected companies can detect and improve security vulnerabilities using Frontier AI and security SaaS, after putting in place alternative control measures to replace network separation.

Application requirements for financial companies will be eased to total assets of 2 trillion won or more and at least 300 full-time employees, from total assets of 10 trillion won or more and at least 1,000 employees.

Electronic financial service providers must have annual electronic financial transaction amounts of at least 2 trillion won, with related revenue exceeding 10 percent of total revenue. In both sectors, the chief information security officer must not concurrently hold other information technology functions.

Applications are open until Sept. 14. The FSC plans to review security capabilities and AI use in September and confirm selection results around Oct. 7. Selected companies will be issued a letter of non-enforcement for network separation rules for 1 year.

The FSC plans to consider additional rounds and ways to institutionalise the programme on a permanent basis, based on test progress and additional demand.