The effectiveness of an emergency security inspection carried out by the financial authorities to respond to a spate of hacking incidents in the financial sector recently came under scrutiny at a National Assembly audit. In response, Lee Eog-weon, chairperson of the Financial Services Commission (FSC), said he would receive reports on additional in-house inspections by each financial company beyond the checklist items.
At the National Policy Committee’s audit on Oct. 8, Kim Hyeong-yeon of the Rebuilding Korea Party asked Lee Eog-weon, chairperson of the Financial Services Commission (FSC), “Some banks are reviewing only three months’ worth and reporting no issues,” and asked, “Is a finding of no issues after a three-month review the same as no issues after a one-year review? Why do financial companies have different inspection periods?”
Kim disclosed a 12-item self-inspection checklist distributed by the Financial Supervisory Service to financial companies and pointed out gaps in the inspection standards. He said, “For the item asking whether there were intrusion attempts and damages, there is no instruction on how long a period to review,” and added, “Then a ‘yes’ applies whether you review three months or a year.”
In response, the chairperson said, “The inspection cycles differ by financial company,” adding, “In light of this situation, we had financial companies conduct additional in-house inspections.” He went on, “Besides the 12 items on the checklist, financial companies will conduct their own additional inspections, and after receiving those reports, we will assess the overall situation.”
Lee also said regarding the hacking incident, “Our response is seriously lacking even in very basic areas,” adding, “We need to conduct more thorough reviews and make changes.”
The National Policy Committee agreed that morning to summon the heads of the five major commercial banks as witnesses for the audit in connection with the wave of data leaks in the financial sector. KB Kookmin Bank President Lee Hwan-joo, Shinhan Bank President Jeong Sang-hyeok, Hana Bank President Lee Ho-seong, Woori Bank President Jeong Jin-wan, and NH NongHyup Bank President Kang Tae-young are scheduled to appear on the 19th at the audit of the Financial Supervisory Service.
Meanwhile, Lee also said he intends to increase the sense of responsibility among financial companies and telecom operators regarding a strict liability system for remedying voice phishing damages.
When Son Myeong-su of the Democratic Party of Korea mentioned Singapore’s “waterfall approach,” under which financial companies and telecom operators bear responsibility, Lee said, “Based on advanced examples, we will consider how to design the system so that financial companies and telecom operators assume stronger responsibility.”
Click Here For The Original Source.
