South Korea’s FSC eases financial SaaS network rules

South Korea’s Financial Services Commission (FSC) has eased web separation rules for fiscal institutions, opening the doorway to wider usage of cloud-based software-as-a-service (SaaS) for interior operations.

The FSC confirmed that fiscal companies and physics fiscal work providers volition beryllium capable to present definite SaaS tools for administrative and back-office functions without going done the fiscal regulatory sandbox programme.

Under the change, SaaS solutions specified nether the Enforcement Decree of the Act connected the Development of Cloud Computing and Protection of Its Users are exempted from web separation rules nether the Electronic Financial Transactions Act and related supervisory regulations.

The easing is not comprehensive. To bounds risks astir information exposure, the exemption does not widen to activities involving “personal recognition accusation oregon idiosyncratic recognition information”.

Financial operators volition inactive request to unafraid support via the fiscal regulatory sandbox programme wherever pseudonymised idiosyncratic information is utilized done SaaS.

Alongside the relaxation, the FSC is tightening information obligations for companies that marque usage of the caller flexibility.

Financial institutions indispensable guarantee their SaaS applications are “pre-screened by the Financial Security Institute (FSI)”.

They are besides required to support strict IT information protocols for entree devices and person their compliance controls reviewed each six months. The findings volition beryllium past reported to their main accusation information officers.

To assistance companies set to the revised regime, the FSI has published an accusation booklet connected fiscal IT security, covering SaaS usage, cardinal information risks and corresponding mitigation measures.

Regulators expect the softer web separation stance connected SaaS to amended coordination betwixt departments and overseas branches by making interior collaboration much seamless.

They besides foresee reduced reliance connected in-house servers and on-premise infrastructure, perchance lowering IT absorption costs and administrative workload.

The authorities besides indicated that broader SaaS deployment successful areas specified arsenic “performance management, collaboration tracking, and truthful on” whitethorn promote much data-driven determination making and bring greater uniformity to interior absorption processes.

"South Korea’s FSC eases fiscal SaaS web rules" was primitively created and published by The Accountant, a GlobalData owned brand.

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