FSC Korea Kicks Off Working Group on Artificial Intelligence

Source: Regulation Asia Editors, Regulation Asia 2020-07-17

The working group will seek to promote the use of AI adoption in financial services as part of the government’s ‘New Deal’ policy initiative.

South Korea’s FSC (Financial Services Commission) on Thursday (16 July) held a kick-off meeting of a new working group tasked with promoting the use of artificial intelligence (AI) technology in financial services.

“AI technology can help improve the effectiveness, inclusiveness and accountability while lowering costs in providing financial services,” the FSC said, pointing to credit scoring, loan assessment, insurance and asset management as service areas that will benefit.

The move to promote AI adoption in financial services is part of the government’s KRW 114 trillion ‘New Deal’ policy initiative, which centres on creating more tech sector jobs and promoting digitalisation of industries as a new post-coronavirus growth engine.

At the meeting, participants discussed major trends and policies surrounding the application of AI in financial services, the working group’s plans to promote the sector. In particular, the working group will seek ways to improve upon regulations that may currently hamper the ability of financial firms to develop innovative AI-based products and services.

The working group is made up of officials and experts from both the public and private sectors, including firms that specialise in AI technology, fintechs, financial firms, other relevant institutions and academia.

The working group is being organised into four key functional subgroups:

Legal & Regulatory Group, tasked with drawing up guidelines to promote the application of AI in financial services, including ethics guidelines for AI-based financial services
Infrastructure Group, tasked with developing an AI data library and AI testbed to support research and development
Consumer Protection group, tasked with drawing up standards for consumer protection and remedies
Regtech & Suptech Group, tasked with reviewing ways to apply AI towards boosting the effectiveness of regulatory compliance and financial supervision

The working group will deliberate measures for the next four months, with an aim to unveiling its plans for promoting AI in financial services by the end of the year.

FSC

FSC Korea Kicks Off Working Group on Artificial Intelligence

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