“Compensation only for secondary damages?” Shinhan Bank chief says bank plans full compensation regardless of fault amid lawmakers’ criticism

[Financial News] Major banks affected by personal information leaks said they were considering expanding the scope of compensation for affected customers. The move follows lawmakers’ criticism that compensation should also cover the data leaks themselves, beyond the existing policy of fully compensating customers for secondary damages.
On the 19th, Shinhan Bank President Jeong Sang-hyeok said on the 19th, in response to a question from Social Democratic Party lawmaker Han Chang-min about the bank’s compensation policy at the National Assembly Political Affairs Committee’s audit of the Financial Supervisory Service, “Regardless of whether customers were at fault, we are planning, for now, to provide full compensation to around 25,000 affected customers.”
That day, Rep. Han urged the banks to adopt more proactive compensation measures. Kookmin, Shinhan and Hana banks, whose information was leaked in hacking incidents, had previously said they would provide full compensation if secondary damage occurred. On this point, Rep. Han pressed them: “Who bears the burden of proving secondary damage? Isn’t it the public who have to bear it all?” and “I don’t know where my personal information was leaked, but will you compensate everyone whose information was leaked from a bank, no matter what?”
In response, Shinhan Bank President Jeong Sang-hyeok said, “As you pointed out, we are reviewing that matter now.”
KB Kookmin Bank President Lee Hwan-ju also said the bank would consider expanding the scope of compensation. He said, “We have already announced that we will provide full compensation if damage occurs. We will actively review the scope and level of compensation regarding the point you raised.”
Hana Bank President Lee Ho-seong described compensation measures currently in place, including waiving fees for customers whose personal information was leaked and helping them enroll in financial security insurance. He said, “We are already providing compensation as an initial measure by waiving fees,” and “We are contacting customers directly to enroll them in financial security insurance so we can compensate them for any additional damage that may occur.” He added, “Regardless of that, we will of course be 100% liable for compensation if any damage occurs.”
Rep. Han also criticized the bank chiefs’ management accountability over the personal information leak incidents. In particular, he argued that bank chiefs whose terms are due to expire at the end of this year should be evaluated during reappointment reviews for their responsibility for failures to protect customer information and maintain internal controls.
Rep. Han asked President Jeong Sang-hyeok whether he intended to seek reappointment, saying, “I believe that if a bank chief has failed even to properly protect customer information and has fallen short in their responsibility for managing internal controls, they are not qualified to discuss reappointment.”
President Jeong replied, “I haven’t thought about that for now,” and added, “The urgent priority right now is to focus on providing relief to victims and on measures to prevent a recurrence.”
Rep. Han emphasized, “As their terms near their end, it is very important to show the public what responsible bank chiefs look like.”
[email protected] Seo Ji-yun Reporter