FSC halts insurance institute's token and AI business plans

South Korea’s Financial Services Commission (FSC) has put the brakes on the Korea Insurance Research and Development Institute's (KIDI) push to expand into new digital asset-based businesses, according to an exclusive report from Aju Business Daily. The institute submitted an application to the FSC on Feb. 9 to amend its articles of incorporation, seeking permission to issue educational tokens and establish an artificial intelligence (AI) subsidiary, but has yet to receive approval. The report suggests the delay stems from concerns that the move is premature, as a basic act on digital assets has not yet been enacted. There is also reportedly debate over whether expanding into for-profit ventures aligns with KIDI's original purpose. KIDI maintains that its proposed businesses are being reviewed within the existing regulatory framework and pose no issues.