KB Kookmin Bank has failed to qualify for the easing of network separation regulations by financial authorities. Following its exclusion from the first round of assessments, it remains the only one of the five major banks not to receive regulatory relief.
On November 6, the Financial Services Commission announced that it had selected 13 financial companies for the second round of emergency easing of network separation regulations, which allow the use of artificial intelligence (AI) and software as a service (SaaS) for security purposes. The selection process, initially scheduled to conclude on October 7, was delayed due to a series of hacking incidents in the financial sector.
Network separation is a security system that isolates a financial institution's internal work network from external internet networks to protect internal systems from outside intrusions. In light of increasingly sophisticated cyberattacks utilizing AI, financial authorities are temporarily relaxing network separation regulations to more quickly and broadly identify security vulnerabilities in the sector.
In the banking sector, NH Nonghyup Bank and IBK Industrial Bank were selected, leaving KB Kookmin Bank as the only major bank excluded from the regulatory easing. In the first round, Shinhan Bank, Hana Bank, Woori Bank, and the internet-only Kakao Bank were chosen.
KB Kookmin Bank's exclusion is believed to be influenced by a recent incident involving the leakage of customer information. A source in the financial sector stated, "KB Kookmin Bank's absence from the regulatory easing list seems less about inadequate preparation and more about the timing being unfavorable."
In September, KB Kookmin Bank experienced an external attack on its mobile work support system, resulting in the exposure of personal information for 2,091 customers. Given that financial authorities consider security capabilities and internal control levels when selecting companies, the incident history may have weighed heavily during the assessment process.
This selection process also expanded regulatory easing beyond the banking sector. Among insurance companies, Samsung Life, Kyobo Life, and Shinhan Life were selected, while Toss Securities was included among securities firms. Additionally, KB Kookmin Card was included among credit card companies. For the first time, electronic financial service providers Kakao Pay and Toss Pay were also granted regulatory exceptions.
* This article has been translated by AI.
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