Financial Supervisory Service to boost AI-driven cybersecurity

The Financial Supervisory Service (FSS) is moving to strengthen cybersecurity within the financial sector following a series of hacking incidents and customer data leaks. During a National Assembly audit on the 19th, FSS Governor Lee Chan-jin emphasized the need for an “AI-based defense against AI-based attacks” to counter evolving cyber threats.

To bolster security, the FSS plans to mandate the systematic identification and management of IT assets and enhance vulnerability assessments. The agency will also expand mock hacking exercises to include AI-driven penetration attacks. Furthermore, the FSS is considering institutional improvements to encourage financial institutions to increase their investments in security budgets and personnel, in consultation with the Financial Services Commission.

The audit also saw the heads of South Korea’s five major banks—KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup—summoned as witnesses, the first time all five have appeared together since 2022. While Shinhan, KB Kookmin, and Hana Bank confirmed customer data leaks, Woori and NH Nonghyup reported similar attacks that did not result in data breaches. In response, the banks are reviewing their security systems and customer compensation procedures.