Korea’s financial authorities are moving to phase out longstanding rules requiring financial firms to separate their internal networks from the outside internet, aiming to strengthen the industry’s defenses against sophisticated cyberattacks powered by artificial intelligence (AI), officials said Friday. However, cybersecurity experts warn that easing the rules before adequate safeguards are in place could open new avenues for attack. Financial Services Commission (FSC) Chairman Lee Eog-weon announced Thursday that the regulator would launch a task force this month to develop a plan by the first quarter of next year to replace the so-called “network separation” rules with an AI-based security framework, guided by the principle of fighting AI attacks with AI. The task force will bring together officials from the FSC, the Ministry of Science and ICT, the National Intelligence Service, the Financial Supervisory Service and the Financial Security Institute, alongside private-sector AI and cybersecurity experts and financial industry executives. The changes will be phased in rather th