South Korea's Financial Services Commission (FSC) will establish an AI-powered insurance fraud prevention infrastructure as part of its broader financial sector reform agenda for the second half of 2026, with the measure aimed at strengthening the detection and prevention of insurance fraud.
This was revealed in the FSC's policy agenda under its plans to make financial services more trustworthy. The regulator said it will establish the AI-based insurance fraud prevention infrastructure alongside measures to strengthen anti-money laundering (AML) capabilities. This is one of its reforms to address activities that disrupt financial markets and reinforce financial stability.
The broader programme also includes reforms to corporate governance, supervisory processes and digital regulation to accelerate the adoption of artificial intelligence across financial services.