Review of expanded AI regulation in the financial sector and credit loans in three days 1trillion
The Bank of Korea analyzed that generative AI reduces working hours, but no increase in productivity has been confirmed. On the same day, the financial sector discussed expanding the scope of AI regulation to include model risk management, while credit loans increased by 1trillion won in three days, and the outstanding balance last month increased for the first time in 6months.
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The Bank of Korea presented an analysis on 6 month 7 day that the use of generative AI reduces working hours. However, it said that evidence linking this to increased production has not yet been confirmed. The Bank of Korea acknowledged the time-saving effect of AI adoption.
The financial sector summarized on the same day that the use of AI is spreading rapidly. Financial authorities stated that the existing model risk management framework should be expanded to cover AI models as well. Model risk management is a framework for managing the risk that model errors may lead to financial losses.
Personal credit loans have surged recently. According to reports, credit loans increased by 1trillion won in three days. The outstanding balance of credit loans across the financial sector last month increased for the first time in 6months.
This trend was reportedly the result of increased demand for debt-financed investing amid high interest rates. Authorities said they were concerned about the phenomenon and were monitoring the situation. Specific response measures have not been disclosed.
The reports released that day separately covered an analysis of AI’s practical effects, regulatory discussions in the financial sector, and an increase in household credit. The reports were compiled based on analyses and tallies by institutions.
Sources: 연합뉴스 경제
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