On August 13, 2024, the Financial Services Commission and the Financial Supervisory Service (collectively the “Financial Authorities”) announced a roadmap for reforming network separation regulations (the “Roadmap”), reflecting feedback from the industry on the existing network separation regulations. The feedback indicated that the existing network separation regulations caused inefficiencies in the operations of financial companies and electronic financial business entities (collectively the “Financial Companies”) and hindered the adoption, research, and development of new technologies such as Software as a Service and generative AI.

The Financial Authorities gathered comments concerning financial security regulations through several town hall meetings. To address these concerns and make necessary changes to applicable regulations, they have established a dedicated task force team focused on reforming network separation regulations in the financial industry. This team has actively collected feedback from market participants. Drawing on this feedback, the Financial Authorities have developed a detailed Roadmap for reforming network separation regulations and enhancing the financial security system. The reform will be implemented in three phases to ensure a smooth transition, considering the existing financial security system, which has long been isolated from external communication channels such as the Internet.

Under the Roadmap, network separation regulations are expected to be reformed to promote the adoption of new technologies and enhance operational efficiency. Please refer to the attached newsletter for details of the Roadmap and its implications for the business operations of the Financial Companies.

[Korean Version]