Financial Crime World

Financial Data Breach Response Plans in Korea Face Scrutiny Amid Rising Cyber Threats

Introduction

In the face of escalating global cyber threats, financial institutions in Korea are under increasing pressure to develop robust data breach response plans. This article explores the regulations and guidelines governing data breach reporting in Korea, as well as the measures being taken by financial institutions to mitigate risks.

Reporting Requirements for Data Breaches

According to Article 34 of the Personal Information Protection Act and Article 39-4 of the Credit Information Use and Protection Act, personal information controllers must report cases of divulgence involving a significant number of individuals. The Reporting on Divulgence of Personal Information System requires institutions to take immediate action in case of a data breach.

  • Incidents affecting 1,000 or more individuals: Notification is mandatory within five days.
  • Sensitive credit information breaches: Institutions must notify affected parties within 24 hours.
  • Reporting to the Financial Services Commission (FSC): Financial institutions are required to report divulgence cases to the FSC.

Consequences of Non-Compliance

Institutions failing to comply with reporting requirements face severe penalties under the Personal Information Protection Act. Furthermore, failure to notify affected parties can lead to damage to reputation and trust.

Measures to Mitigate Risks

To mitigate these risks, Korean financial institutions are investing heavily in cybersecurity measures and developing incident response plans. The Personal Information Protection Commission (PIPC) has designated the Korea Internet Security Agency (KISA) as the operating agency for receiving reports on personal information divulgence cases.

  • Reporting data breaches: Institutions can report data breaches to KISA by visiting the PIPC website or contacting them at 118 without an extension.
  • Contacting KISA for further inquiries: Individuals can reach out to KISA’s privacyclean@kisa.or.kr email address for further information.