As hacking attacks targeting the financial sector continue, seven major financial companies cut their information security budgets this year from last year. It was found that, on average, only about 70% of the security budgets allocated last year were executed.
According to materials submitted by People Power Party lawmaker Park Seong-hun, a member of the National Policy Committee, from financial authorities on the 11th, seven of the top 20 financial companies with recent system failures cut their information security budgets this year.
Those surveyed are ▲ Standard Chartered Bank Korea ▲ Toss Bank ▲ KakaoBank ▲ Suhyup Bank ▲ Kakao Pay Securities ▲ KB Kookmin Bank ▲ Toss Securities ▲ Korea Federation of Savings Banks ▲ Shinhan Bank ▲ Citibank Korea ▲ Lotte Card ▲ Woori Bank ▲ Shinhan Investment Corp. ▲ Samsung Securities ▲ Woori Card ▲ Hana Card ▲ Kbank ▲ Korea Development Bank ▲ Hanwha Life Insurance ▲ Lotte Non-Life Insurance, for a total of 20.
Woori Bank recorded the largest cut, reducing its budget 21.7% from 78.659 billion won last year to 61.566 billion won this year. Citibank Korea cut 18%, and Shinhan Bank cut 10.4%. Hanwha Life Insurance (-2.8%), Korea Development Bank (-2.2%), Kbank (-1.7%), and Standard Chartered Bank Korea (-0.9%) also reduced their budgets.
Budget execution rates were also sluggish. Among those surveyed, the average execution rate for last year’s information security budgets across the 20 companies was 69.6%. Eleven companies fell below an 80% execution rate. Woori Bank stood at 53.8%, KB Kookmin Bank at 58.1%, and Shinhan Bank at 69.9%.
Park said, “Financial companies did not even execute their security budgets properly,” adding, “Authorities must thoroughly review the status of security investments and vulnerability management and make clear the responsibility of financial companies and supervisory authorities where mismanagement is identified.”
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