Kim Byoung-hwan, chief of the Financial Services Commission, gives a welcome speech during the opening ceremony for Korea Fintech Week 2024 at Dongdaemun Design Plaza in Seoul, Tuesday. Yonhap

Kim Byoung-hwan, chief of the Financial Services Commission (FSC), vowed, Tuesday, to relax regulations to move toward the artificial intelligence (AI) revolution and to ensure that the financial sector leads Korea's push to become one of the top three global leaders in AI.

The head of Korea's top financial regulator made the remarks in his welcome speech during the opening ceremony for Korea Fintech Week 2024 that kicked off for a three-day run at Dongdaemun Design Plaza in Seoul.

This year's event is taking place under the theme, “Beyond Boundaries: FinTech and AI Redefining Finance,” bringing together participants from the country's leading fintech firms, financial companies and universities as well as overseas governments and institutions.

“AI is quickly becoming a game changer, transforming not just industries but society as a whole. Much like the early days of the internet revolution, how we harness AI will determine the competitiveness of individuals and businesses alike,” Kim said.

“The financial sector, in particular, holds great promise as a leader in the AI revolution as the industry possesses vast amounts of data that are often referred to as the food and fuel of AI.”

Kim said AI can be broadly applied across investment, customer management, product development, credit analysis and risk management, all of which are closely connected to financial services.

Since taking office on July 31, Kim has already introduced a roadmap to ease regulations, which had obligated financial institutions to physically separate their internal networks from external networks. Introduced in 2013, the network separation regulations were designed to protect financial consumers from cyberthreats, but have been criticized for undermining the competitiveness of the financial sector.

Kim said the decision to relax these regulations was aimed at facilitating the smooth adoption of generative AI within the financial industry.

“Moving forward, we will continue to streamline security regulations, focusing on principle-based approaches, and will relax restrictions on data usage by financial institutions,” he said.

“We will continue our policy efforts to ensure that the financial sector leads Korea's push to become a top 3 global leader in AI.”

Financial Services Commission (FSC) Chairman Kim Byoung-hwan, left, shakes hands with Lithuanian Finance Minister Gintare Skaiste during their meeting at Dongdaemun Design Plaza in Seoul, Tuesday. Courtesy of FSC

Earlier in the day, Kim met with Gintare Skaiste, finance minister of Lithuania, and shared information on their respective financial markets and industry trends. They also discussed ways to strengthen financial cooperation with a focus on the fintech sector.

The Lithuanian minister delivered a congratulatory address for the event, stating: “Fintech, as a disruptive technology that can quickly respond to the changing needs of society, has massive potential to become the driving force in the financial sector that will ensure that financial resources are directed in ways that foster high environmental standards.”