S. Korea To Raise Guard Against Data Breaches, Enhance Punishment For Leaks

(MENAFN- IANS) Seoul, Sep 19 (IANS) South Korea will revamp policies to enhance punishments for companies that fail to properly manage personal data while coming up with fundamental measures to prevent breaches by inducing businesses to expand investment in cybersecurity, the government said on Friday.

Second Vice Minister of Science Ryu Je-myung made the remark during a joint press conference with the Financial Services Commission (FSC) in the wake of recent data breach cases at SK Telecom Co., KT Corp. and Lotte Card Co, reports Yonhap news agency.

"The science ministry, together with leading security experts, will conduct a full-fledged review of the existing security system to establish fundamental measures, rather than just temporary actions," Ryu said.

The move comes one day after President Lee Jae Myung instructed his aides to come up with fundamental measures to minimize damage from hacking attacks.

Ryu said the government will revamp policies to strengthen punishments for companies that intentionally delay notifying authorities of data breaches, while also paving the way for the country to launch investigations even without disclosure.

"The government intends to simultaneously roll out incentive measures so that businesses can voluntarily expand investment in security," Ryu said.

FSC Vice Chairman Kwon Dae-young said the government will make efforts to adopt punitive policies against companies experiencing security breaches by imposing fines that reflect the "consequences to society."

"In order to avoid being trapped in hacking incidents as the country strives to become a leading nation in the artificial intelligence sector, the government, financial companies and related organizations must work together to establish a solid security system," Kwon said.

KT Corp. said Thursday that the number of victims of a mobile payment breach since early August has reached 362, up from the initially reported 278, with total damage estimated at 240 million won (US$173,000).

Lotte Card Co., the country's fifth-largest card issuer, also said Thursday that personal data of some 3 million customers had been leaked in a hacking incident last month.

"The government will closely monitor and supervise Lotte Card to ensure it takes necessary protection measures for customers without delay," Kwon said. "If the FSC's investigation finds any violation, we intend to take strong punitive measures to make an example of it."

SK Telecom Co. reported in April that private data of its entire user base may have been leaked in a cyberattack on its network servers, with a hacking group allegedly attempting to sell client data through Telegram earlier this week.

-IANS

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