South Korea proposes strict cybersecurity rules for financial firms after attacks on banks and crypto exchanges

South Korea targets 130 financial firms after data breaches

South Korea is proposing stricter cybersecurity rules for financial companies after an investigation found security weaknesses at 130 out of 555 firms. The affected companies include banks and crypto exchanges, which are platforms where people buy and sell digital currencies.

About 100,000 pieces of customer information were exposed across the firms. The leaked data includes names, contact details, and identification numbers.

The Financial Services Commission (FSC), South Korea's main financial regulator, said the new rules would bring better threat monitoring, more frequent security checks, and stronger accountability for company leaders.

Crypto firms among those with security gaps

Two crypto-related companies were specifically named. Gopax, an exchange that was shut down in 2019, operates under a company called Streami. Crypto trading platform Prabang also disclosed that a hack on Oct. 2 exposed personal information belonging to some of its customers.

Under the proposed reforms

Larger financial institutions would need to undergo vulnerability assessments at least twice a year. The regulator also plans to improve how companies share information about security threats. For smaller firms, the FSC is considering requiring artificial intelligence tools for security monitoring.

In addition, the regulator may allow extra cybersecurity inspections outside of regular schedules when urgent threats appear.

Investigation into the attacks continues

The FSC said it is still investigating whether the cyberattacks involved AI or were carried out by the same group of hackers.

Why this matters

The proposed changes could raise the security bar for crypto exchanges and banks in South Korea, one of the world's largest crypto markets. Stronger rules may help protect customer data and reduce the risk of future breaches.

• A review found security deficiencies at 130 of 555 South Korean financial firms
• About 100,000 customer records were exposed, including names and ID numbers
• Crypto exchange Prabang confirmed an Oct. 2 hack; Gopax operator Streami was also affected
• Proposed rules include twice-yearly vulnerability checks for larger firms and possible AI monitoring
• Regulators are still investigating whether AI was used or if the same attackers are behind all incidents

• Cointelegraph

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