[August 2025 – Seoul] — The Financial Services Commission (FSC), Financial Supervisory Service (FSS), and Korea Exchange (KRX) have announced a coordinated initiative to integrate artificial intelligence into Korea’s market oversight systems. The move is aimed at detecting and deterring unfair trading practices with greater precision and speed.
According to the announcement, AI-powered models will be deployed to monitor abnormal trading patterns, insider activities, and potential cases of market manipulation. By leveraging advanced algorithms, regulators expect to reduce detection time and identify irregularities that traditional monitoring systems might miss.
In addition to AI-enabled surveillance, the authorities introduced tougher enforcement measures. These include freezing suspicious accounts, confiscating illicit gains, and imposing penalty surcharges on violators. Officials noted that the integration of technology with punitive tools would create a stronger deterrent effect against misconduct in capital markets.
The initiative reflects Korea’s broader strategy to safeguard market integrity and investor confidence in the era of digital finance. As algorithmic and AI-driven trading become more prevalent, regulators are under pressure to modernize their oversight mechanisms.
Market experts welcomed the development, pointing out that combining AI analytics with real-time enforcement tools could set a benchmark for other markets. They cautioned, however, that governance, transparency, and accountability must remain central to prevent over-reliance on automated surveillance.
The FSC, FSS, and KRX emphasized that the measures are part of an ongoing effort to balance innovation with compliance, ensuring that Korea’s capital markets remain fair, resilient, and globally competitive.