Financial Supervisory Service to Promote 'Digital Transformation' for 3 Years... Lee Bok-hyun "Automation of Licensing and Disputes"

Presiding Over the 'Digital Transformation Declaration Ceremony'
AI Applied to Unfair Trading and Civil Complaint Response
"Building a Data-Driven Financial Supervision System"

Lee Bok-hyun, Governor of the Financial Supervisory Service (FSS), held the 'Financial Supervision Digital Transformation Declaration Ceremony' on the 17th and stated, "We will redesign the licensing, civil complaint, and dispute handling processes to automate repetitive tasks and incorporate artificial intelligence (AI) technology." The FSS is accelerating the digital transformation of supervisory tasks by applying AI to analyze unfair trading suspicions, among other efforts.

Lee Bok-hyun, Governor of the Financial Supervisory Service, is attending and speaking at a meeting with commercial bank presidents held at the Bankers' Hall in Jung-gu, Seoul on the 19th. Meeting with the bank presidents for the first time this year, Governor Lee plans to discuss internal controls within the banking sector, household debt management, and loan interest rates. 2025.2.19 Photo by Jo Yong-jun

At the declaration ceremony, Governor Lee presented the digital transformation promotion strategy and expected effects.

The ceremony, held at the FSS headquarters in Yeouido, Seoul, was attended by Governor Lee, Lee Jong-oh, Deputy Director of Digital & IT, and all FSS executives and staff.

The FSS plans to implement 15 detailed tasks across four major areas of digital transformation from this year through 2027. The four major areas are establishing a data-driven supervisory system, digitalizing financial supervision work processes, building a smart workplace, and expanding access to financial supervision information.

The 15 tasks include establishing a supervisory system based on microdata, building a corporate data linkage analysis portal, paperless licensing and registration work, constructing a comprehensive financial civil complaint and dispute portal system, and improving the financial supervision information data sharing system.

First, a system will be established to analyze bank corporate loans and corporate financial information at the source data level rather than aggregated data.

An AI-based 'SupTech (supervisory technology)' response system will be built by applying AI technology to detect unfair trading suspicions. AI will be applied to transaction analysis to identify suspect groups. AI will be trained on suspicious transaction patterns to present facts of suspicious transactions and reasons for detection.

High-performance graphics processing units (GPUs) and other AI infrastructure will be introduced, and generative AI models will be trained to suit financial supervision tasks to improve work efficiency. Generative AI will be utilized for classifying complaints, suggesting similar cases, and drafting response letters.

The scope of disclosure will be expanded to include specific factual details in sanction announcements. The FSS will promote system linkage between the two agencies to share inspection and sanction information, licensing documents, and key statistics with the Financial Services Commission.

The FSS believes that digital transformation can dramatically improve the quality of financial supervision services. It expects financial companies to reduce regulatory compliance costs and enhance benefits for financial consumers as well as increase trust in the authorities.

The FSS announced that it will continue to share progress and effects of major tasks while carrying out the digital transformation project over the next three years.

Governor Lee urged, "We must break away from the existing framework that relies on manpower and solve problems based on digital foundations to create new value. All FSS executives and staff should participate in the digital transformation with a sense of mission to lay the cornerstone for future financial supervision."