🇹🇠Thai, 15 October 2026, cybersecurity regulation
South Korea Targets Crypto Firms in Security Crackdown
South Korea's FSC has tightened cybersecurity rules after a breach at 16 financial institutions, including two crypto exchanges.
The Financial Services Commission (FSC) of South Korea has proposed a major overhaul of cybersecurity measures after a recent security incident at 16 financial institutions, including two crypto exchanges, resulted in the exposure of approximately 100,000 customer data items. The FSC has completed a cybersecurity audit of 555 financial institutions by October 8, with 130 reporting security flaws that need to be addressed.
The most common flaws found include outdated security software, weak tracking systems, and multiple authentication factors missing in critical systems. The 16 affected institutions include four commercial banks, including Shinhan Bank and KB Kookmin Bank, four savings banks, lending companies, and two crypto exchanges.
The FSC has warned of the ‘painful’ security vulnerabilities, with FSC Secretary Shin Jin-chang criticizing financial institutions for failing to meet basic requirements despite repeated warnings. Shin emphasized that the audit results are concerning, considering previous incidents that prompted calls for stricter control measures.