|Financial Supervisory Service Governor Yoon Suk-heun / Yonhap|
By Kim Bo-eun
The Financial Supervisory Service (FSS) will beef up its monitoring of financial services companies with artificial intelligence (AI) and big data, FSS Governor Yoon Suk-heun said, Thursday.
Utilizing AI and big data for around-the-clock supervision is part of the regulator's 2019 plans aimed at cracking down on securities crimes and financial fraud as well as strengthening consumer protection.
"We will utilize information and communications technology (ICT) to enhance the efficiency of supervisory and inspection tasks," FSS Governor Yoon Suk-heun said in a press conference the same day.
A system employing AI will monitor financial firms, and the FSS will launch on-site inspections when the system tracks abnormalities.
Using the system, the FSS plans to put private moneylenders under the microscope. The regulator also plans to set up a system based on big data that tracks mis-selling of insurance products through telemarketing.
In addition, the FSS stated it would seek to expand the utilization of "regtech," which employs information technology to enhance regulatory processes.
This is aimed at helping financial firms and fintech companies adhere to financial regulations, it said.
The set of plans also includes obtaining the authority to launch investigations, to better counter unfair trade practices.
The FSS is currently in discussion with the Financial Services Commission (FSC) on the matter.
When the regulator does obtain the authority, appointed FSS employees will be able exercise investigative rights including searching and seizing, banning overseas travel of suspected individuals, and questioning suspects, under the command of prosecutors.
Discussions are taking place in order to have the FSC be able to recommend who would be given investigative rights at the FSS.
The FSS governor said a system will be devised, taking into account existing systems at institutions such as the Korea Customs Service.