Security budgets executed at a 69.6% rate by 20 financial firms with frequent outages; 7 cut spending this year

[Financial News] The execution rate for last year’s information security budgets at 20 financial firms that frequently experience IT outages was found to be below 70%. Concerns have been raised that financial firms handling customers’ information and assets are not investing enough in security infrastructure.
An analysis of data obtained from financial authorities by Rep. Park Seong-hun of the People Power Party, a member of the National Assembly’s Political Affairs Committee, on the 10th found that last year’s information security budgets at the 20 financial firms with the highest number of IT outages totaled 438 billion won. Of that amount, actual spending came to 305.03 billion won, or 69.6% of the total.
Woori Bank had the lowest execution rate. It spent 42.327 billion won of its 78.659 billion won budget, for an execution rate of just 53.8%.
KB Kookmin Bank also spent 39.297 billion won of its 67.613 billion won budget, posting a rate of 58.1%. Hanwha Life Insurance likewise recorded 58.1%, while Suhyup Bank came in at 60.7%.
Seven of the 20 firms cut their information security budgets this year compared with last year. Woori Bank set this year’s budget at 61.566 billion won, down 21.7% from the previous year. Citibank Korea allocated 7.297 billion won, a reduction of 18.0%, while Shinhan Bank set its budget at 40.591 billion won, down 10.4%.
Hanwha Life Insurance, Korea Development Bank, K Bank and Standard Chartered Bank Korea also reduced their security budgets this year compared with the previous year.
Rep. Park Seong-hun said, “Inadequate investment in security cannot be viewed as a matter of management efficiency; it is a matter of trust in the financial system.” He added, “Rather than responding to every incident with belated measures, the authorities should conduct a comprehensive review of security investment practices and hold those found to be deficient accountable.”
[email protected] Lee Jeong-hwa Reporter