FSC urges financial firms to draw up plans to improve cybersecurity against hacking

[Financial News] As cyberattacks using artificial intelligence (AI) accelerate, financial authorities have called on financial firms to put security measures in place. With financial consumers’ concerns growing by the day, they are urging firms to roll out tangible measures.
According to financial industry sources on the 1st, the Financial Supervisory Service (FSS) discussed measures to prepare for hacking, including convening working-level staff from associations in each financial sector on October 30. The authorities discussed establishing an AI-based joint security monitoring system centered on the Korea Federation of Banks (KFB), the Korea Financial Investment Association (KOFIA), and the Korea Federation of Savings Banks, among other sectoral associations.
There were also calls to strengthen security checklists. Financial firms that have already completed self-assessments using the checklists will be required to submit plans to the authorities to address identified deficiencies, and their implementation will be checked regularly.
The authorities are reportedly planning to conduct on-site inspections and examinations first at financial firms that have suffered the greatest harm from data leaks. A series of hacking incidents occurred from late September to early October at Shinhan Financial Group, KB Kookmin Bank, Hana, BNK Busan Bank, YEGARAM SAVINGS BANK, Welcome Savings Bank, OK Savings Bank, and Hyundai Capital, among others. Subsequently, data breaches caused by cyberattacks were also confirmed at Daishin Securities, Bithumb, and Mirae Asset Global Investments.
An on-site inspection of YEGARAM SAVINGS BANK, which suffered a major data breach involving about 50,000 pieces of personal information, was completed over roughly 10 days starting on the 13th of last month. YEGARAM SAVINGS BANK is preparing a response stating that it will register as a new member of the Financial Security Institute and swiftly work to address vulnerabilities and strengthen its monitoring systems and security measures.
In the insurance sector, the General Insurance Association of Korea and the Korea Life Insurance Association are also supporting individual companies’ responses to hacking incidents. Their role is to share security issues relevant to member companies and identify and circulate information about damage in other sectors. So far, no insurer other than Mirae Asset Life Insurance is known to have reported an additional information leak caused by hacking.
The Financial Supervisory Service had originally planned to complete its on-site inspection of Mirae Asset Life Insurance by the 30th of last month. However, it extended the inspection period, deciding that further checks were needed. It has also extended its ongoing examination of Kookmin Bank in connection with an increase in the number of people affected by a data leak and is looking into the circumstances. KB Kookmin Bank revised the number of people affected by the leak from the initially reported 119 to 2,091, saying that additional victims had been identified.
Financial authorities suspect that AI agents were used in the recent series of hacking attacks and are continuing their investigation. The Financial Services Commission (FSC) plans to hold a meeting on the 5th to review responses to AI hacking, with the FSS, the Financial Security Institute, relevant government agencies, associations across the financial sector, and the heads of the five major commercial banks.
A financial security industry official said, “Only confirmed cases of damage have been reported; there may be financial firms that do not even have the capacity to verify incidents. Since this is an all-out attack using AI, something everyone is experiencing for the first time, we need to hurry to put countermeasures in place.”

[email protected] Park Mun-su Reporter