South Korea Tightens Financial Cyber Rules After 16 Security Breaches

The regulatory crackdown follows an industrywide inspection of 555 financial entities, which revealed that 130 firms—including two cryptocurrency exchanges—failed to meet basic security standards. Common vulnerabilities identified included outdated software, insufficient authentication procedures, and gaps in external system monitoring. Among the affected institutions were major commercial banks like Shinhan and KB Kookmin, alongside crypto operators Streami and Prabang.

While investigators have not confirmed the theft of passwords or payment data, the exposed records contained names, contact details, and resident registration numbers. In response, the Financial Services Commission is pushing for a "defense against AI with AI" strategy, aiming to deploy advanced threat-monitoring tools while holding executives more accountable for security lapses. Smaller firms, which frequently reported the highest number of shortcomings due to limited resources, will be offered shared technical support to bolster their defenses against ongoing digital threats.