South Korea orders financial sector security checks after data breaches

South Korean regulators have mandated financial institutions to conduct security inspections following a series of cyberattacks that exposed personal data of tens of thousands of customers. Financial Services Commission Chairman Lee Eog-weon convened an emergency meeting with executives from financial institutions and industry groups to initiate these checks.

Institutions are required to conduct internal inspections promptly and report their findings to authorities as regulators assess the vulnerabilities exposed by these recent attacks. Initial investigations suggest that some attackers targeted external websites and servers utilized by loan agents and employees, which have been monitored less thoroughly than core financial systems.

Lee indicated that authorities cannot rule out the use of artificial intelligence in the attacks and called for the accelerated development of security systems capable of utilizing AI to counter AI-powered threats. Several South Korean financial institutions have recently reported breaches. Approximately 40,000 customers at Yegaram Savings Bank and around 25,000 customers at Shinhan Bank were affected.

Other institutions impacted include KB Kookmin Bank, BNK Busan Bank, and Hyundai Capital, according to Yonhap. The breaches have heightened pressure on banks and regulators to enhance oversight of systems outside institutions' primary technology infrastructure, including those accessed by third-party agents and employees. South Korean President Lee Jae Myung was informed about the breaches and the government's response, according to presidential spokesperson Kang Yu-jung.

The president expressed grave concern over the incidents and directed officials to conduct a comprehensive investigation and devise measures in response. This move comes as financial institutions anticipate increasingly sophisticated cyber threats, and regulators are now investigating whether AI tools were involved in the latest incidents.