South Korea moves to lift network‑separation rule for AI‑ready banks, honors security leaders

South Korea's financial regulator announced on 10 January that it will fully lift the network‑separation (망분리) requirement for financial institutions that demonstrate strong AI and cyber‑security capabilities. The measure follows an emergency easing of the rule that began last month to allow AI‑based security testing. The regulator also signaled plans to overhaul related legislation, including amendments to the Electronic Financial Transaction Act and a new Digital Financial Safety Act, which would increase penalties for hacking incidents, expand CISO authority and strengthen consumer disclosures.

At the same ceremony, the Financial Services Commission chief presented commendations to two firms—Samsung Fire & Marine and Korea Securities Finance—and to three individuals, including KakaoBank CEO Yoon Ho‑young, for their contributions to financial cyber‑security. The awards highlighted cooperation between government and the private sector in building resilient digital finance infrastructure.