South Korea’s financial authorities are widening a temporary network separation exemption to 75 eligible institutions, up from 49, and will select up to 15 participants instead of 10. The second emergency measure lowers the threshold for financial companies to ₩2 trillion in assets and 300 full-time employees, while electronic financial businesses face separate transaction-volume and revenue requirements. Selected firms will receive one-year no-action letters allowing them to use Frontier AI and cloud-based security services to identify and remediate vulnerabilities after implementing alternative controls. Applications close September 14, with selections planned around October 7. Interim results from the first test found that Frontier AI could analyze millions to tens of millions of lines of source code within hours and identify existing vulnerabilities, while authorities also highlighted the need for faster patching, stronger management of externally exposed assets and AI-based defense capabilities. The Financial Services Commission plans to share the findings across the sector, revise AI security guidelines and consider eventually lifting network separation rules for firms with advanced AI and security capabilities.