South Korea’s Fintech Industry Association Champions RegTech and Anti-Money Laundering (AML) Innovation

The Korea Fintech Industry Association organized the "2025 RegTech Division Seminar" on October 15 at the International Finance Center (IFC) in Yeouido, Seoul. The seminar aimed to share cutting-edge trends in anti-money laundering (AML) and foster enhanced compliance methodologies for fintech professionals. This landmark event reflects South Korea's growing commitment to leveraging advanced regulatory technologies (RegTech) for financial security and trust-building.

The Strategic Importance of RegTech in Modern Finance

At the seminar's opening, Lee Geun-joo, President of the Korea Fintech Industry Association, highlighted RegTech's pivotal role in navigating the rapidly shifting regulatory landscape. “RegTech has graduated from a compliance toolkit to become a foundational element of trust in the financial sector,” Lee declared. He emphasized the transformative importance of artificial intelligence (AI) in automating AML processes, identifying suspicious transactions, and digitizing internal controls. Lee underscored that adopting RegTech-driven solutions is no longer optional for financial entities—it is a crucial imperative for sustainable growth and regulatory alignment.

Panel Sessions: Redefining Compliance with Technology

Understanding Compliance 4.0 and RegTech’s Evolution

Park Man-sung, Chairman of the RegTech Division, inaugurated the first panel session with a presentation titled “Why RegTech, Why Now?”. He introduced the concept of "Compliance 4.0," showcasing how AI-powered RegTech solutions are revolutionizing regulatory frameworks globally. Park emphasized that integrating AI into AML efforts enables financial institutions to move beyond mere regulatory adherence, driving a competitive advantage grounded in trust and efficiency.

AI-Native Technologies for Regulatory Transformation

The seminar’s second speaker, Professor Yoon Seok-bin of Sogang University, elaborated on “AI Technology Trends and RegTech.” Yoon explained how AI-native advancements, including generative AI and AI agents, are reshaping traditional business and compliance paradigms. “By employing generative AI tools to automate intricate compliance tasks, businesses can convert regulatory obligations into opportunities to strengthen trust-based competitive advantages,” Yoon observed, signaling a future where technology seamlessly aligns with regulatory obligations.

Addressing AML Risks in Stablecoins and CBDCs

Professor Jung Ji-yeol of Hanyang University delivered a critical analysis of AML strategies concerning stablecoins and central bank digital currencies (CBDCs). Jung highlighted the evolving role of CBDCs and stablecoins, both of which are now integral components in policy experiments that intersect global financial order and AML frameworks. He advocated for the integration of AML principles within institutional and technological infrastructures via a “compliance-by-design” approach. Jung’s session provided actionable insights into preempting financial crimes in the era of digital currencies, ensuring global regulatory cooperation remains robust.

Advanced Regulatory Updates: Preparing for Future Changes

In a dedicated session, Kim Jong-young, Executive Vice President of Octa Solution, outlined pivotal updates in AML-related legislation and regulatory practices. He detailed recent amendments introduced by South Korea’s financial authorities and previewed innovations set to unfold between 2025 and 2026. Central to Kim’s discussion was the role of RegTech automation in enabling financial institutions to not only meet heightened regulatory expectations but thrive amidst compliance challenges. “Boosting AML capabilities through advanced RegTech tools will define financial companies’ competitive edge moving forward,” Kim posited.

Harnessing AI for Data-Driven AML Innovations

The seminar concluded with Jeong Hae-jin, Managing Director of Hanwha Systems, who demonstrated practical applications of AI-powered platforms for AML enhancement. Jeong showcased tools such as generative AI-based chatbots and data analytics dashboards, which maximize the value derived from financial datasets. “An effective adoption of AI depends on holistic expertise in IT, data collection, analysis, visualization, and domain knowledge,” Jeong explained. He stressed that these dynamics are essential for financial institutions to fully capitalize on AI's transformative potential for AML compliance.

Building a Collaborative Future: Fintech and RegTech Integration

The Korea Fintech Industry Association expressed optimism that the seminar would pave the way for compliance innovation by fostering deeper integration of AI-driven RegTech solutions. The organization views this event as a stepping stone for fintech companies aiming to bolster their AML strategies amidst rapidly evolving regulatory demands. By merging technological sophistication with proactive compliance frameworks, South Korea’s fintech sector is well-positioned to lead the global charge in AML innovation.