TLDR: President Lee Jae-myung’s administration is exploring the relaxation of financial and industrial sector separation rules to attract more capital into the artificial intelligence industry. This move, discussed during a meeting with OpenAI CEO Sam Altman, aims to boost AI investment while implementing safeguards against monopolistic practices.
President Lee Jae-myung’s administration is signaling a potential shift in South Korea’s long-standing financial regulations, considering a relaxation of rules that separate the finance and industrial sectors, specifically for the burgeoning artificial intelligence (AI) realm. This policy re-evaluation is designed to channel more capital into emerging technologies and was a key topic during a recent meeting between President Lee and OpenAI CEO Sam Altman on Wednesday, October 2, 2025.
President Lee emphasized the immense scale of investment required for AI development, stating that the government should investigate a limited easing of existing restrictions. He underscored the importance of implementing robust safeguards to prevent potential monopolistic abuses within the industry.
The call for such regulatory adjustments has been gaining momentum. During a National Growth Fund meeting held last month and chaired by President Lee, prominent business leaders, including Celltrion Executive Chairman Seo Jung-jin and Shinhan Financial Group Chairman Jin Ok-dong, expressed their willingness to expand investments if these regulations were eased. Both business and financial leaders argue that the current restrictions, which impede the flow of capital into advanced industries like AI, lack contemporary justification.
These remarks reflect a growing recognition within the South Korean government that its financial framework must adapt to remain competitive in the global AI race, where governments and major technology firms are making aggressive pushes. The original separation rules, instituted in 1982, were designed to prevent conglomerates from misusing banks as private funding sources and to mitigate risks from non-financial sectors impacting the financial system. While there have been some partial relaxations, such as for internet banks, the core framework has largely remained intact.
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Business groups have consistently argued that these rules, now over four decades old, are no longer suitable for the current corporate environment. Specifically, financial institutions are currently prohibited from holding more than 15 percent of a non-financial company, a limit widely regarded as outdated in an era where technological advancements are blurring the traditional lines between banking and industry. Previous attempts to modify this framework were abandoned by the preceding administration due to criticisms regarding banks’ reliance on interest income.
