Financial Supervisory Service "Supporting Fintech Companies... Proactive Risk Management"

Digital Sector Financial Supervisory Briefing on the 21st
Prevent Causes of Repeated IT Incidents
Enhance Financial Companies' Self-Inspection Checklists

The Financial Supervisory Service (FSS) announced its commitment to support new industry and fintech companies in demonstrating their innovative capabilities and to respond to risk factors arising from financial digitalization. On the 21st, the FSS held the '2023 Digital Sector Financial Supervision Briefing' at its Yeouido headquarters, emphasizing this approach.

Kim Byung-chil, Deputy Governor of the FSS, stated, "We will fully support financial companies and new industry and fintech firms to overcome the challenging domestic and international economic conditions and to demonstrate their innovative capabilities. We will closely monitor risk factors arising from the digitalization of finance and proactively respond to information technology risks and consumer protection risk factors."

The FSS plans to designate additional data-specialized institutions to promote data combination and utilization between financial and non-financial sectors and is reviewing measures to expand the scope of work for MyData operators. Additionally, it will inspect the utilization status of artificial intelligence (AI) guidelines in the financial sector and the internal control status related to AI risks.

To reduce IT risks, the FSS will strengthen preventive inspections and checks. Regulations and systems related to electronic finance will also be reorganized. The causes of repetitive IT incidents will be classified, and a checklist that financial companies can use for self-inspection will be enhanced.

Regarding electronic financial service providers, the FSS will strengthen sound management standards and user protection standards. It also plans to encourage the disclosure of fee rates for prepaid service providers.

In the digital asset market, the FSS will utilize the 'Digital Asset Risk Council,' launched in June last year, to diagnose related risks in advance. It will also review management measures for potential risks arising from the increased linkage between the digital asset market and traditional financial markets.