The South Korea Financial Services Commission reported that Standing Commissioner Ahn Chang-kuk joined the Financial Stability Board’s Standing Committee on Supervisory and Regulatory Cooperation to discuss external audit quality, private credit oversight and financial authorities’ use of artificial intelligence. Members also considered future work on regulatory and supervisory modernization, AI related risks and applications, and stronger international cooperation on stablecoins. On audit quality, discussions covered the potential efficiency gains and conflicts of interest arising from private equity investment in audit firms, as well as the need for human oversight to control errors and bias when AI is used in audits. Private credit discussions focused on leverage, risk concentrations and links among banks, insurers, asset managers and private funds that could transmit shocks across the financial system. For supervisory AI, members examined governance and explainability risks alongside uses such as early warning and risk monitoring. Ahn highlighted South Korea’s AI based virtual asset market surveillance and its planned use of AI for complaint classification and recommendations of relevant dispute cases and court precedents. During related engagements in New York, Ahn discussed policy finance, overseas investment and investor networks to support Korean startups entering the U.S. market. He also met South Korean financial institutions operating in the U.S. to review local business conditions and operational difficulties, and reiterated support for their overseas expansion.

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