As large-scale hacking incidents and personal data breaches continue to plague the financial sector, banks are ramping up security investments and enhancing protections for affected customers. They are significantly increasing their information security budgets to prevent incidents while also providing financial benefits such as insurance and fee waivers to assist customers after breaches occur.
On November 9, Lee Yang-soo, a member of the National Assembly and chairman of the Information Committee, revealed that Shinhan Bank has allocated 115 billion won for its information security budget next year, nearly 2.8 times the 40.6 billion won budgeted this year. Hana Bank has set aside 100.1 billion won, while KB Kookmin Bank plans to secure over 100 billion won following a budget reallocation. Woori Bank has earmarked 76.3 billion won.
Investment in research and development (R&D) for security technology and intrusion defense is also being expanded. Of Hana Bank's 100.1 billion won information security budget for next year, 83.7 billion won will be directed toward the introduction of new security technologies and R&D for intrusion defense. Key projects include the establishment of an AI-based cybersecurity platform, enhancement of a zero-trust security control system, and the development of a digital asset security framework. Shinhan Bank has allocated 31.6 billion won, Woori Bank 20 billion won, and KB Kookmin Bank 16.7 billion won for related budgets.
The increase in security investments by banks is seen as a response to the growing need for enhanced security following a series of hacking incidents and data breaches. Recently, personal information of approximately 25,729 customers was leaked from Shinhan Bank, while KB Kookmin Bank and Hana Bank reported breaches affecting 2,210 and 89 customers, respectively.
Financial authorities are also taking steps to strengthen security management systems within the financial sector. They have recently instructed financial institutions to expand their information technology (IT) and information security budgets for the upcoming year and to bolster their security personnel. Additionally, they plan to enhance security accountability among CEOs and conduct comprehensive reviews of security management across about 580 financial companies and electronic financial service providers.
In addition to preventive investments, measures to protect affected customers are being strengthened. Shinhan Bank has decided to offer financial reassurance insurance and various fee waivers to customers inconvenienced by the recent data breach. The financial reassurance insurance covers losses from phishing, pharming, smishing, and memory hacking, with coverage up to 10 million won, fully funded by the bank. The coverage period runs from September 29, 2026, to September 28, 2027. Customers whose information was leaked will also receive benefits such as waiving fees for up to 50 interbank transfers per month for one year, a 30% preferential exchange rate for foreign currency, and a 50% discount on foreign currency fees. In-branch visits will be supported by dedicated staff in the Premier Lounge, a VIP service area.
Hana Bank is also elevating the status of hacking victims to VIPs, providing various fee waivers and financial benefits. KB Kookmin Bank is reviewing compensation plans for customers affected by data breaches. Woori Bank, which has not received any reports of data breaches among the four major banks, is preparing for potential legal liabilities through personal data liability insurance.
* This article has been translated by AI.
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