Lee Eok-won: “Even the basics of hacking response are lacking; we must use AI to stop attacks ... Without the 600 million won cap, home prices would have risen further”

[Financial News] FSC Chairman Lee Eok-won said, regarding a recent series of hacking incidents involving the use of artificial intelligence (AI) in the financial sector, “Our response is seriously inadequate, even in the most basic areas.” He assessed that home prices would have risen further if there had been no regulation capping mortgage loans at 600 million won.
At an audit by the National Assembly’s National Policy Committee in Yeouido, Seoul, on the 8th, FSC Chairman Lee Eok-won responded to questions from Social Democratic Party lawmaker Han Chang-min about information leaks in the financial sector, saying, “We need to examine things more thoroughly and make changes.”
Lee said, “To fend off attacks using artificial intelligence (AI), we ultimately have no choice but to use AI,” adding, “We are looking at various phased and effective ways to change network-separation regulations.”
Democratic Party of Korea lawmaker Park Min-gyu also said, “We need to detect signs of intrusion early through AI-based security monitoring and respond proactively,” pointing out that “services such as payments and cloud computing are granted exceptions, but AI for security purposes is not.” Park criticized the situation, saying, “The weapons hackers use are becoming more sophisticated every day, but banks are unable to use AI for security purposes because of network-separation regulations.”
In response, Lee said, “We are considering various phased and effective ways to change network-separation regulations,” adding, “We will look into it carefully.”
In his opening remarks at the audit that day, Lee said, “We are working to lift network-separation regulations, with security as a prerequisite, in order to support innovation in the financial sector and strengthen its security capabilities.”
Lee made clear that he took a different position from the opposition parties on the strict approach to managing real estate loans. People Power Party lawmaker Shin Dong-wook pointed out that rising property prices despite the 600 million won loan cap amounted to a policy failure. Lee responded, “I think things might have been even worse if we hadn’t done that (set the loan limit).”
As for why the maximum mortgage loan was capped at 600 million won, Lee said, “At the time, high-priced homes in the Gangnam area were driving the rise in property prices in Seoul, so most people consider that measure to have been effective.”
When Shin referred to President Lee Jae-myung’s comment about so-called “flattening”—home prices falling in Gangnam while rising slightly in Gangbuk—and asked, “According to this logic, if prices keep rising as a result of this flattening process, wouldn’t the policy and its outcomes end up running counter to each other?”, Lee replied, “That is why we are focusing on supply. We will rapidly and substantially expand supply to stabilize the market.”
Earlier, at a press conference last month, President Lee said, while explaining the recent trend of home prices falling in Gangnam and rising in outer Seoul areas such as Gangbuk, “It seems that a kind of flattening process is underway.”
After some criticized the comment as suggesting that rising home prices outside Gangnam were a good thing, the Blue House explained that it was a description of price trends.

[email protected] Park Mun-su Reporter