The proposal comes amid growing concerns over cybersecurity risks in the financial sector and weaknesses identified across hundreds of institutions.
South Korea is proposing stricter cybersecurity requirements for banks, cryptocurrency businesses and other financial institutions after confirming security incidents at 16 firms. The Financial Services Commission (FSC) reported that approximately 100,000 customer records had been exposed, while an industry-wide review identified security weaknesses at 130 of the 555 financial companies assessed.
The affected institutions included four commercial banks, four savings banks and two cryptocurrency service providers: Streami, the operator of the Gopax exchange, and virtual asset service provider Prabang. Exposed information included names, telephone numbers, email addresses and resident registration numbers. Authorities said they had not confirmed the exposure of account passwords or payment card numbers that could directly enable unauthorised transactions.
The FSC plans to strengthen cybersecurity assessments, with larger financial institutions potentially required to undergo vulnerability checks at least twice a year. Proposed measures also include tighter access controls, improved threat monitoring and clearer responsibilities for company executives. Firms that identified security weaknesses have begun implementing corrective measures.
The regulator is also exploring AI-based tools to identify vulnerabilities and improve the sharing of threat information across the financial sector. Meanwhile, authorities have warned that exposed customer data could be exploited for phishing and fraudulent loan applications.
Why does it matter?
The incidents highlight a persistent gap between formal cybersecurity requirements and their implementation across the financial sector. As banks and crypto platforms become increasingly interconnected, weaknesses at individual firms can create risks for the wider financial system, particularly when stolen personal data can be reused for targeted fraud. South Korea’s challenge will be to turn its proposed reforms into consistent security practices, including among smaller providers that may lack the resources of major financial institutions.
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