SEOUL – Industrial Bank of Korea (IBK) is establishing a comprehensive governance framework to oversee and manage the entire lifecycle of its Artificial Intelligence (AI) operations. By shifting from a purely symbolic stance on AI ethics to a practical operational stage, IBK aims to lead the financial sector in mitigating legal and regulatory risks associated with the rapid adoption of AI.

Under the leadership of CEO Jang Min-young, IBK is integrating AI into its existing internal control frames. This new initiative moves beyond simple service-level checks to a holistic approach covering planning, development, verification, operation, and disposal.

A key feature of this system is the introduction of a risk-based grading system. IBK plans to quantitatively assess the risk levels of individual AI services and apply differentiated management standards accordingly.

"In the past, explicit control standards for AI utilization were insufficient," an industry official remarked. "The new structure ensures that the decision to deploy or operate a service is based on a rigorous preliminary risk assessment."

The bank is also recalibrating its information security and data privacy protocols to be "AI-centric." This involves integrating existing security policies with AI model environments to monitor the entire data process—from collection and utilization to output—thereby preventing data leaks or misuse of generative AI.

To support this transition, IBK is considering the formation of a dedicated AI governance organization. This body will clarify the Roles and Responsibilities (R&R) between business units and compliance departments, ensuring a balance between the speed of innovation and the necessity of internal control.

From a consumer protection perspective, the bank is focusing on "accountability and explainability." IBK is developing interpretive standards that align internal regulations with financial laws to prepare for the expansion of AI-driven decision-making.

Industry analysts suggest that IBK’s move signals a shift in the financial sector’s competitive landscape. The benchmark for AI excellence is moving from mere "performance" to "controllability."

"We are aiming for a structural transformation into an 'AI-driven bank' to enhance our competitiveness," an IBK official stated. "We will drive this shift across all areas—including governance, infrastructure, and organizational culture—so that both customers and employees can tangibly experience this innovation."

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