South Korea Eases Network Separation Rules to Combat AI Hacking Threats

On May 24, 2026, South Korea's Financial Services Commission announced plans to ease network separation rules for financial firms to deploy AI-based security systems in response to threats from advanced AI, particularly Anthropic's 'Mythos.' The easing will initially apply to 49 firms with total assets over 10 trillion won and at least 1,000 employees, allowing them to use AI for identifying vulnerabilities and building defense systems. The first round of applications will accept up to 10 companies by the end of May, with further rounds planned for August and the fourth quarter. The initiative aims to enhance security capabilities against AI-driven attacks, which are likened to a cold virus that cannot be completely blocked but must be managed. The FSC also plans to establish an AI security research institute and support center to assist smaller firms in adapting to these changes.

Key Points: • South Korea is easing network separation rules for financial firms to enhance AI security. • The first application round for regulatory easing will accept up to 10 firms by May 29, 2026. • The initiative is a response to threats from advanced AI systems like Anthropic's 'Mythos.'