The South Korea Financial Services Commission introduced revised AI guidelines for the financial sector at a meeting on AI transformation with industry and research participants, setting out a self-regulatory framework for all financial companies, including fintech businesses. The update centers on seven principles for AI use covering governance, legality, human-supervised use, model and data credibility, financial stability, good faith toward consumers, and security. The guidelines are intended to be applied proportionately based on each firm's resources, AI use case and service risk, while high-impact AI and other AI subject to the Framework Act on the Development of Artificial Intelligence and the Creation of a Foundation for Trust must follow applicable regulatory requirements. The guidelines will take effect on June 22, 2026. They state that AI should currently be used as an assistive tool under human oversight, with ultimate decision-making responsibility resting with the AI supervisor. Supporting measures will include an AI risk management framework from the Financial Supervisory Service and an AI security guidebook from the Financial Security Institute, alongside an AI guidelines helpdesk for firms. In remarks at the meeting, Vice Chairman Kwon Dae-young also outlined a broader policy direction that includes easing network separation requirements for AI cybersecurity purposes, upgrading rules on personal credit data consent and data pseudonymization, developing standards on AI behavior, and considering rules on AI responsibility and authority as AI agents take on larger roles in product recommendations, product subscriptions and payments. The Financial Services Commission said it will review areas requiring regulatory reform, seek AI risk management measures and consider staged test operations for AI agents through the financial regulatory sandbox program from the second half of 2026, once preparatory work is completed.
South Korea Financial Services Commission2026-06-18
South Korea Financial Services Commission updates financial sector AI guidelines and outlines phased sandbox testing
The South Korea Financial Services Commission has issued revised AI guidelines for the financial sector, setting out seven principles for AI use by financial companies and fintech firms. The self-regulatory framework takes effect on June 22, 2026, with supporting risk management and security guidance to follow. The commission also outlined further work on regulatory easing, AI accountability rules and phased sandbox testing for AI agents in the second half of 2026.