Regulatory Alerts2026-09-03 | 87645Added · Updated
Temporary Easing of Network Separation Rule Available for More Financial Companies for AI Cybersecurity Purpose
The Financial Services Commission discussed measures for the second phase easing of the network separation rule, broadening eligibility to include nonbank financial companies and electronic financial service providers. For financial companies, eligibility criteria are eased to KRW2 trillion or more in total assets and 300 or more regular staff, while electronic financial service providers require an annual electronic financial transactions volume of KRW2 trillion or more and over 10 percent of sales from electronic financial services. Selected companies, totaling 15 from 75 eligible entities, will receive a one-year no-action letter in October, allowing them to temporarily ease the network separation rule to utilize frontier AI models and SaaS programs for cybersecurity purposes, provided they establish adequate internal control mechanisms and report test findings. Applications for this second phase testing are open from September 3 to 14.