Lee Chanjin, FSS Chief: "Strict Sanctions If Lotte Card Hacking Was Due to Negligence"

Full Compensation for Lotte Card Victims
Financial Supervisory Service Launches On-Site Inspection

Yonhap News

Lee Chanjin, Governor of the Financial Supervisory Service, has pledged to impose strict sanctions if it is confirmed that the recent Lotte Card hacking incident was caused by negligence in management. He also stated that all damages resulting from the incident will be fully compensated.

At an executive meeting on September 2, Lee said, "The recent breach at Lotte Card could amplify consumer anxiety and distrust in the financial market," and made these remarks.

Lee emphasized, "We will impose strict sanctions for financial security incidents caused by negligence in management," and instructed, "Prioritize the prevention of consumer damage, and make every effort to respond swiftly and thoroughly so that electronic financial transactions can be conducted more securely."

First, the Financial Supervisory Service has activated an emergency response system and is currently conducting an on-site inspection at Lotte Card. Through this, they plan to thoroughly investigate the cause of the incident and the extent of the damages. In addition, to minimize consumer damage, the company will operate a dedicated call center and strengthen monitoring of suspicious financial transactions.

Lee explained, "We have established procedures to ensure full compensation for any potential unauthorized use, so that financial consumers will not suffer any losses," and added, "I have ordered that the website provide separate guidance on card cancellation or reissuance so that consumers can directly block hacking damages if they wish."

According to the Specialized Credit Finance Business Act and related terms and conditions, card companies are responsible for unauthorized card use resulting from hacking. Nevertheless, there have been instances where card companies have attempted to avoid such responsibility, which is why Lee addressed the issue directly.

Lee also urged, "Executives at financial companies must recognize that information security is not simply a matter of regulatory compliance but a foundation for building customer trust," and instructed, "Under the responsibility of the CEO, conduct a comprehensive review of your internal financial security management systems from the perspective of consumer protection."

It is known that immediately after taking office, Lee emphasized the importance of 'financial consumer protection' during briefings from all departments. At his first meeting with bank CEOs on August 28, he also stated, "I will make consumer protection an unwavering principle."

Meanwhile, Lotte Card reported to the Financial Supervisory Service last month that it had been subjected to a hacking attack. During a server inspection, malicious code was detected on three servers and subsequently removed. On August 31, evidence was also found that a hacker had attempted to leak data from the online payment server.

As of the first half of this year, Lotte Card has 9.67 million customers. So far, there have been no cases of customer information or other critical data being leaked or infected by ransomware.

This content was produced with the assistance of AI translation services.