Financial Services Commission approves partial revision of the Electronic Financial Supervision Regulations

Purpose
The South Korean Financial Services Commission has revised the “Electronic Financial Supervision Regulation” to improve financial security regulations, promoting a self-security framework for the industry. The updated regulation aims to enhance cybersecurity resilience and facilitate quick compensation for customers in case of electronic financial incidents.

Effects on Industry

The revision of the Electronic Financial Supervision Regulation is expected to have significant effects on the industry, particularly in terms of:

• Enhanced cybersecurity: The revised regulation encourages a self-security framework, allowing financial companies to take ownership of their security measures. This will lead to improved cybersecurity resilience and reduced reliance on external regulations.
• Simplified rules: The updated regulation reduces the number of specific rules from 293 to 166, making it easier for financial companies to comply with regulatory requirements.
• Increased focus on principle over rule: The revised regulation emphasizes principles rather than specific rules, allowing financial companies to exercise their autonomy in implementing security measures.

Relevant Stakeholders

The following stakeholders are affected by the revision of the Electronic Financial Supervision Regulation:

• Financial companies: Banks, securities companies, insurance companies, and other financial institutions will need to comply with the revised regulation.
• Customers: The updated regulation aims to provide quick compensation for customers in case of electronic financial incidents, ensuring they receive adequate protection.

Next Steps

To comply with the revised Electronic Financial Supervision Regulation, financial companies are advised to:

• Review their current security measures and update them according to the revised regulation.
• Establish a self-security framework, taking ownership of their cybersecurity measures.
• Implement measures to improve their cyber resilience and prepare for potential incidents.
• Ensure they have adequate insurance coverage in case of electronic financial incidents.

Any Other Relevant Information

In addition to the above information, it is worth noting that:

• The revised regulation will be implemented on August 5, 2025, with a six-month transition period for companies to adjust their internal regulations and policies.
• The updated regulation aims to establish a self-security framework for financial companies, promoting a culture of cybersecurity within the industry.
• The South Korean Financial Services Commission plans to introduce further digital financial security regulations in the future, focusing on “self-security-result responsibility” as a core principle.