"Guidelines Needed for AI, Data, and Security Requirements"
Listening to Business Challenges Such as Regulatory Sandbox
On July 8, the Korea Fintech Industry Association announced that it held an inauguration ceremony for the 'Fintech Artificial Intelligence (AI) Council' at One IFC in Yeouido, Seoul.
The Korea Fintech Industry Association is taking a commemorative photo after launching the Fintech AI Council and holding a seminar in accordance with the AI industry strengthening policy following the inauguration of the Lee Jae Myung administration. Photo by Kinsanhyup
The Fintech AI Council was established to promote fintech AI innovation as AI-based financial service advancement is becoming a reality worldwide. Lee Geunju, president of the association, will serve as the inaugural chair of the AI Council.
Chairman Lee plans to continue gathering feedback from member companies and to take follow-up actions aimed at improving AI-related regulations and securing government funding support.
The National Policy Planning Committee of the Lee Jae Myung administration has established an AI Task Force (TF), and a large-scale investment of 100 trillion won is planned. The launch of the council is seen as a strategic response from the fintech industry to these developments.
Chairman Lee stated, "The global fintech AI market is expected to grow from approximately $13.7 billion (about 18.7 trillion won) in 2023 to about $123.2 billion (about 168.5 trillion won) by 2032," and explained, "The value of fintech as a driver of financial innovation and a future growth industry is increasing through anti-money laundering (AML), abnormal transaction detection, asset management automation, and alternative credit evaluation models."
He added, "There is a lack of clear regulations or guidelines regarding AI model validation standards, the scope of data usage, and security requirements," and emphasized, "The council must discuss policy directions necessary for AI adoption and build an industry environment where fintech AI innovation and ethics are harmonized."
The industry pointed out that, in addition to network separation issues, there is also a lack of standard guidelines for API (application programming interface) development when introducing AI in innovative financial services. There was consensus that Korea's legal framework for financial AI development needs urgent improvement compared to countries with more relaxed regulations such as the United States, United Kingdom, and Singapore.
The association plans to officially request government support for AI budgets and education in conjunction with the launch of the council.
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