Banks mull higher cybersecurity spending after AI-linked hacking incidents: sources
Quick Look
South Korean banks including Shinhan, Hana, and KB Kookmin plan to increase cybersecurity budgets and personnel following recent hacking attacks that exposed customer data, with KB Kookmin targeting over 100 billion won in cybersecurity spending by 2027.
AI-generated summary
Why It Matters
South Korean banks have experienced multiple hacking incidents this month involving customer data leaks, with Shinhan Bank reporting exposure of 25,000 customers' information including names, phone numbers, and annual incomes.
SEOUL, Oct. 11 (Yonhap) -- South Korean banks are considering increasing spending on cybersecurity systems and personnel following a series of recent hacking attacks on local lenders, industry sources said Sunday.
Major lenders, including Shinhan Bank, Hana Bank and KB Kookmin Bank, have reported leaks or exposure of customer data in hacking incidents this month, raising concerns about the potential scale of the breaches.
Shinhan Bank said on Oct. 1 that personal information belonging to about 25,000 customers, including their names, phone numbers and annual incomes, had been leaked. The hackers reportedly used advanced artificial intelligence (AI) tools in the attack.
Similar leaks or exposure of customer information were also reported at other banks.
In response to the AI-linked attacks, KB Kookmin Bank plans to increase its cybersecurity budget to more than 100 billion won (US$74 million) in 2027, up from 86.07 billion won this year, according to the sources.
Shinhan Bank plans to allocate a record budget for cybersecurity, while Hana Bank plans to invest tens of billions of won in strengthening its security systems next year, the sources said.
The banks also plan to increase their cybersecurity personnel next year.
The moves follow President Lee Jae Myung's call over the weekend for a thorough investigation into the attacks.
The Financial Supervisory Service (FSS) identified Internet Protocol (IP) addresses in 12 countries on Monday that are suspected of being linked to the AI-assisted hacking attacks.
However, investigators were unable to determine the locations linked to some of the IP addresses.
What to Watch
AI outlook — possibilities, not facts
South Korean banks will successfully implement increased cybersecurity measures by 2027
Likely · Within years
Regulatory scrutiny of bank cybersecurity practices will increase in South Korea
Very likely · Within months
Open Questions
- What specific data was exposed at Hana Bank and KB Kookmin Bank?
- Who is responsible for the hacking attacks?
- What specific AI tools were used in the attacks?
- Will the increased cybersecurity spending be sufficient to prevent future attacks?
