Intensified Cybersecurity Measures Announced in South Korea Following Data Breaches at KT and Lotte Card Companies
In a series of recent developments, South Korea's government and regulatory bodies have taken decisive action to address two major cybersecurity breaches at KT Corp. and Lotte Card.
The unauthorized micropayment scandal at KT Corp., involving at least 362 individuals and causing damages totalling approximately 240 million won ($172,000), has sparked concern. A joint public-private task force is urgently investigating how an attacker was able to access KT's internal network, siphoning off personal data.
Meanwhile, a massive data breach at Lotte Card compromised the personal information of around 2.97 million customers. Sensitive payment data was leaked for around 280,000 users, a concerning revelation that has prompted stern regulatory consequences from authorities.
Kwon, a high-ranking official, emphasized the need to hold Lotte Card to the highest standards in protecting customer data. Similarly, Ryu Je-myung, the Second Vice ICT Minister, called for a fundamental overhaul of the entire security architecture.
To address these issues, the government has activated an interagency response, led by the National Security Office, and involving both the ICT Ministry and the Financial Services Commission (FSC). The FSC has announced plans to strengthen the authority of chief information security officers and mandate stronger consumer disclosure requirements.
In response to these breaches, KT engaged an independent cybersecurity firm to conduct a four-month forensic audit of its internal systems. The recent findings and disclosures from KT were a result of this audit. The FSC also plans to implement fines proportional to the scale of future breaches, and companies that intentionally delay or fail to report cyber intrusions will face significantly heavier penalties.
Up to 20,030 users of KT Corp. were exposed to unauthorized data harvesting, with compromised data including mobile phone numbers, International Mobile Subscriber Identity (IMSI) numbers, and International Mobile Equipment Identity (IMEI) codes.
The main authorities involved in the comprehensive regulation of cybersecurity in South Korea include the government's top security advisors and relevant ministries responsible for national security and technology policy, such as the National Intelligence Service, Ministry of Science and ICT, and Ministry of the Interior and Safety. These bodies coordinate to establish and enforce cybersecurity measures in cooperation with international partners.
The Korea Internet & Security Agency is the only organization in Korea dedicated to promoting internet and information security. The government will also be empowered to launch investigations based on circumstantial evidence, even in the absence of a formal corporate disclosure.
South Korea's Ministry of Science and ICT and the Financial Services Commission have pledged a sweeping government response to a surge in high-profile cyberattacks. This commitment underscores the government's dedication to protecting its citizens' personal data and ensuring the security of the nation's digital infrastructure.
