South Korea’s Financial Services Commission (FSC) has outlined a sweeping reform agenda aimed at driving economic growth through what it calls a “great financial transformation,” with artificial intelligence (AI) positioned as a key enabler of productivity, consumer protection, and market stability.
At a joint business report held on December 19 with the Fair Trade Commission, FSC Chairman Lee Eok-won presented the agency’s long-term strategy built around three pillars: productive finance, inclusive finance, and trustworthy finance. The event brought together senior leaders from across South Korea’s financial and regulatory institutions.
Under its productive finance agenda, the FSC plans to channel large-scale capital into future-oriented industries, including artificial intelligence, semiconductors, and advanced batteries. Beginning in 2026, the National Growth Fund will deploy 30 trillion won annually, totaling 150 trillion won over five years. Several of the first proposed “megaprojects” are expected to focus on AI-driven industrial transformation, as the government seeks to shift finance away from real estate and toward innovation, regional development, and long-term investment.
AI is also central to plans for modernizing the financial sector itself. The FSC said it will support the transition of financial institutions into AI-based industries, including the use of advanced data analytics, AI-powered credit assessment models, and digital infrastructure to improve capital allocation and risk management. New AI tools are also being developed to combat voice phishing and financial fraud, which authorities described as a growing threat.
Inclusive finance reforms aim to address financial exclusion through lower-interest policy loans, expanded use of alternative data to identify “hidden credit,” and digital systems that help borrowers rebuild credit histories. Meanwhile, the trustworthy finance pillar emphasizes AI-enabled monitoring to strengthen market oversight, detect unfair trading practices, and enhance cybersecurity across the financial system.
The FSC also plans to introduce AI agents through its MyData framework, allowing consumers to automate actions such as requesting interest rate reductions and managing financial rights more efficiently.
Officials said the reforms are intended to create tangible benefits for households and businesses while ensuring that advanced technologies like AI are deployed responsibly, securely, and in ways that reinforce public trust in the financial system.
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