Major Cyber Attacks Target South Korean Financial Sector, Raising Alarm

South Korea's financial sector is on high alert as hacking threats have expanded from banks to securities firms and other financial institutions. On October 28, multiple securities firms, asset management companies, and cryptocurrency exchanges reported cyber attacks, raising concerns about further incidents and investor anxiety.

According to the financial investment industry, Daishin Securities confirmed that unauthorized access occurred on its server linked to non-face-to-face securities account openings, resulting in the leakage of personal information for 38,490 customers. The leaked data includes names, emails, addresses, communication IDs, bank names, encrypted deposit and withdrawal account numbers, encrypted Daishin Securities account numbers, and encrypted mobile phone numbers.

Meanwhile, Mirae Asset Management reported that it detected unauthorized access to supervisory agency reports within its internal systems. A representative from Mirae Asset stated, "It appears there were indications of access to supervisory agency reports."

Cryptocurrency exchange Bithumb also experienced a hacking incident, confirming on October 27 that unauthorized external access to its internal mobile groupware system led to the leakage of personal information. Bithumb is currently investigating the extent of the data breach, which may include information from regular members of the exchange. The National Police Agency and the Financial Supervisory Service have initiated investigations, with the National Investigation Headquarters beginning preliminary inquiries into the hacking incidents involving securities firms and cryptocurrency exchanges. The Financial Supervisory Service has also dispatched a field inspection team to Daishin Securities to assess system security.

Details regarding the origin of the hacking attacks remain unclear. However, the recent proliferation of generative AI has been cited as a factor contributing to the increase in cyber attacks. With AI tools, even those without specialized knowledge can create malware or identify system vulnerabilities, lowering the barriers to cyber attacks. Lee Chan-jin, head of the Financial Supervisory Service, noted, "As AI is utilized as a hacking tool, security vulnerabilities are easily detected, leading to simultaneous attacks becoming a constant threat."

There are also speculations about possible involvement from North Korea, as some IP addresses identified by financial authorities begin with 175.45, which has been linked to North Korean activities. As of October 21, financial authorities had detected approximately 4,404,101 access attempts.

The financial investment sector is now in a state of emergency, as the hacking threats that were once confined to the banking sector have now extended to securities and asset management firms. Major securities firms and asset management companies have begun internal security checks and emergency responses. A representative from one securities firm stated, "To prepare for advanced security threats such as AI-assisted hacking, we have established AI-based security technologies and threat detection and response solutions, and we continuously conduct simulated hacking training with a dedicated red team."

Investor anxiety is also on the rise. Even though there have been no immediate reports of sensitive personal information leaks or financial losses, the potential for secondary damages from the misuse of leaked information cannot be dismissed. Given that financial transaction information, including account details, is involved, investors are understandably concerned.

Lee Hyo-seop, a researcher at the Capital Market Research Institute, remarked, "Looking at overseas investment banks, 30-50% of their recent hires are IT personnel, many of whom specialize in information security. While concerns about hacking risks have increased due to advancements in generative AI, the domestic financial investment industry is severely lacking in information security personnel and budgets compared to international standards."