5 major bank executives apologized during a National Assembly audit for recent hacking incidents and pledged to enhance security investments and compensation for affected customers. Financial authorities also committed to reassessing hacking vulnerabilities across the financial sector and strengthening security systems to counter AI-based attacks.
On October 19, during a National Assembly audit by the Financial Supervisory Service, Lee Hwan-joo of KB Kookmin Bank, Jeong Sang-hyeok of Shinhan Bank, Lee Ho-seong of Hana Bank, Jeong Jin-wan of Woori Bank, and Kang Tae-young of NH Nonghyup Bank appeared as witnesses. This marked the first time since October 11, 2022, that all five bank heads attended a National Assembly audit together.
During the audit, lawmakers pressed for accountability regarding the recent spate of hacking incidents and personal data breaches within the banking sector. They scrutinized the security investment status of each bank and the execution of their cybersecurity budgets, focusing on measures to prevent secondary damages from leaked personal information and compensation plans for affected customers.
Representative Kim Jae-seop of the People Power Party pointed out that KB Kookmin Bank's cybersecurity budget execution rate for 2025 was only 58%, while Shinhan Bank's was 69.9%. He warned that if contact information and resident registration numbers are leaked, victims could be exposed to illegal private loans and other crimes, urging for protective measures for affected customers.
In response, the bank executives expressed their apologies for the hacking incidents and committed to increasing their security budgets and personnel, as well as enhancing their security systems to address AI-based attacks. They also stated that they would compensate customers in the event of damages.
Financial authorities announced plans to conduct vulnerability assessments and strengthen response systems across the entire financial sector. Lee Chan-jin, head of the Financial Supervisory Service, stated, "I have instructed a comprehensive investigation into the exposure of hacking attack surfaces across the financial sector and will actively encourage financial institutions to strengthen their own security capabilities for effective responses, including AI-based defenses against AI-based attacks."
The audit also raised concerns regarding the succession process of BNK Financial Group's chairman. Representative Park Hong-bae of the Democratic Party criticized the rapid succession procedure last year, which took place over a short period, including during the Chuseok holiday, and noted that all seven external candidates were eliminated. He particularly criticized the Financial Supervisory Service for not disclosing the results of its on-site inspections conducted from December 22 last year to the end of January this year until the regular shareholders' meeting in March.
In response, Lee Se-hoon, senior deputy commissioner of the Financial Supervisory Service, stated, "The inspections conducted on-site have been completed, and we are currently reviewing the legal aspects of the inspection results."
Concerns were also raised about the oversight framework for digital assets. In response to criticisms regarding the distribution of supervisory authority among multiple agencies, Lee explained that the government proposal for the Digital Asset Basic Law includes plans for an integrated supervisory system involving the Financial Services Commission, the Financial Supervisory Service, the Financial Intelligence Unit (FIU), and the Bank of Korea.
On October 19, during a National Assembly audit by the Financial Supervisory Service, Lee Hwan-joo of KB Kookmin Bank, Jeong Sang-hyeok of Shinhan Bank, Lee Ho-seong of Hana Bank, Jeong Jin-wan of Woori Bank, and Kang Tae-young of NH Nonghyup Bank appeared as witnesses. This marked the first time since October 11, 2022, that all five bank heads attended a National Assembly audit together.
During the audit, lawmakers pressed for accountability regarding the recent spate of hacking incidents and personal data breaches within the banking sector. They scrutinized the security investment status of each bank and the execution of their cybersecurity budgets, focusing on measures to prevent secondary damages from leaked personal information and compensation plans for affected customers.
Representative Kim Jae-seop of the People Power Party pointed out that KB Kookmin Bank's cybersecurity budget execution rate for 2025 was only 58%, while Shinhan Bank's was 69.9%. He warned that if contact information and resident registration numbers are leaked, victims could be exposed to illegal private loans and other crimes, urging for protective measures for affected customers.
In response, the bank executives expressed their apologies for the hacking incidents and committed to increasing their security budgets and personnel, as well as enhancing their security systems to address AI-based attacks. They also stated that they would compensate customers in the event of damages.
Financial authorities announced plans to conduct vulnerability assessments and strengthen response systems across the entire financial sector. Lee Chan-jin, head of the Financial Supervisory Service, stated, "I have instructed a comprehensive investigation into the exposure of hacking attack surfaces across the financial sector and will actively encourage financial institutions to strengthen their own security capabilities for effective responses, including AI-based defenses against AI-based attacks."
The audit also raised concerns regarding the succession process of BNK Financial Group's chairman. Representative Park Hong-bae of the Democratic Party criticized the rapid succession procedure last year, which took place over a short period, including during the Chuseok holiday, and noted that all seven external candidates were eliminated. He particularly criticized the Financial Supervisory Service for not disclosing the results of its on-site inspections conducted from December 22 last year to the end of January this year until the regular shareholders' meeting in March.
In response, Lee Se-hoon, senior deputy commissioner of the Financial Supervisory Service, stated, "The inspections conducted on-site have been completed, and we are currently reviewing the legal aspects of the inspection results."
Concerns were also raised about the oversight framework for digital assets. In response to criticisms regarding the distribution of supervisory authority among multiple agencies, Lee explained that the government proposal for the Digital Asset Basic Law includes plans for an integrated supervisory system involving the Financial Services Commission, the Financial Supervisory Service, the Financial Intelligence Unit (FIU), and the Bank of Korea.
* This article has been translated by AI.
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