South Korean Banks To Increase Cybersecurity Spending After AI-Linked Hacking Attacks And Customer Data Leaks

Seoul banks eyeing boost in cybersecurity spending after AI-linked hacking attacks

South Korean banks are reportedly considering increasing their cybersecurity spending and personnel following a series of hacking attacks on local lenders, according to industry sources. Major lenders such as Shinhan Bank, Hana Bank, and KB Kookmin Bank have reported customer data leaks or exposure in these incidents.

Shinhan Bank disclosed that around 25,000 customers' personal information, including names, phone numbers, and annual incomes, were leaked due to an attack utilizing advanced AI tools. Similar leaks have been reported by other banks as well.

KB Kookmin Bank plans to raise its cybersecurity budget to over 100 billion won (US$74 million) in 2027, up from 86.07 billion won this year. Shinhan Bank intends to allocate a record budget for cybersecurity, while Hana Bank is set to invest tens of billions of won in strengthening its security systems the following year.

These measures come after President Lee Jae Myung called for a thorough investigation into the attacks. The Financial Supervisory Service (FSS) identified IP addresses in 12 countries that may be linked to the AI-assisted hacking attacks, though investigators were unable to determine the locations connected to some of these addresses.

South Korean police have added more personnel to a team investigating the recent hacking attacks on financial institutions, aiming to enhance the investigative capabilities of local law enforcement.