Bithumb suffers data breach affecting 844 customers and 715 employees
Financial authorities have initiated on-site inspections in response to a series of hacking incidents targeting cryptocurrency exchanges. On October 29, it was reported that a breach of Bithumb's internal mobile groupware resulted in the exposure of personal information for 844 customers and 715 employees. The leaked data includes resident registration numbers and copies of identification documents.Additionally, the cryptocurrency exchange PraBank experienced a hacking incident that led to losses of approximately 100 million won (about $1 million). The Financial Supervisory Service has begun an on-site inspection in light of these incidents. Authorities plan to conduct a comprehensive review of security systems and management practices across all financial institutions.
Top five financial groups report record profits nearing $20 trillion
The five largest financial groups in South Korea reported a record net profit of 19.63 trillion won (approximately $15 billion) for the third quarter of this year, marking an 8.6% increase compared to the same period last year.KB Financial and Shinhan Financial recorded net profits of 5.79 trillion won and 5.07 trillion won, respectively, surpassing a combined total of 10 trillion won for the first time. Hana Financial also achieved a record profit of 3.62 trillion won, while Woori Financial reported 2.66 trillion won, reclaiming its position as the fourth-largest financial group, overtaking NongHyup Financial, which reported 2.53 trillion won.
However, concerns are growing about potential declines in fourth-quarter performance, as net profits from securities subsidiaries fell by 47.9% compared to the previous quarter, and banks' net interest margins also decreased across the board.
Mandatory external retirement benefit reserves to begin in 2028
The South Korean government plans to gradually implement mandatory external reserves for retirement benefits starting in 2028 to prevent unpaid severance. The initiative will begin with businesses employing over 100 people in 2028, followed by those with 10 to 99 employees in 2029, and finally, businesses with fewer than 10 employees in 2030. The government also aims to promote a fund-type system for managing retirement pensions and encourage employees to receive their severance pay as pensions rather than lump sums.The retirement pension market is rapidly growing. According to a report released by the Ministry of Labor in May, the total accumulated funds exceeded 500 trillion won (approximately $380 billion) as of the end of last year. Investments in exchange-traded funds (ETFs) reached 48.7 trillion won.
U.S. PCE prices rise 3.6% in September, slightly below expectations
The U.S. Personal Consumption Expenditures (PCE) price index rose by 3.6% in September compared to the same month last year, slightly below market expectations. According to a report from the U.S. Department of Commerce on October 29, the PCE price index increased by 0.5% from the previous month, aligning with market forecasts. Excluding food and energy, the core PCE price index rose by 3.1% year-over-year and 0.3% month-over-month, both meeting market expectations. The PCE price index is a key indicator used by the Federal Reserve to assess whether it is achieving its inflation target of 2%.Alphabet's cloud revenue surges 103%, but overall performance disappoints
Alphabet, Google's parent company, reported a 25% increase in revenue for the third quarter, totaling $127.58 billion, but fell short of market expectations. Earnings per share were $2.12, significantly below the anticipated $3.02, impacted by an investment loss of $8.664 billion.Despite a 103% surge in Google Cloud revenue to $30.79 billion, driven by increased demand for AI, the company's core advertising revenue did not meet market expectations. Investors focused more on the rising costs and cash outflows associated with the AI business rather than its rapid growth, leading to a more than 10% drop in Alphabet's stock price in after-hours trading following the earnings report.