Minister Baek Kyunghoon of Science and ICT: "Hacking Is More Serious for SMEs... Preparing Support Measures"

Factories Halted and Ransom Demands Surge Due to Ransomware Attacks
"Large Corporations Have Capital, But SMEs Lack Investment Capacity"
"Government Considering Expansion of Financial Support"

Minister Byun Gihun of the Ministry of Science and ICT. Photo by Yonhap News Agency

In the wake of a series of hacking incidents involving telecommunications companies and other corporations, Minister of Science and ICT Baek Kyunghoon emphasized, "We believe that hacking issues are even more serious for small and medium-sized enterprises that lack the capacity to invest," adding, "It is essential to establish an information security system."

During a press conference marking his 50th day in office, held in Jung-gu, Seoul on September 12, Minister Baek stated, "Telecommunications companies have the capital to respond when problems arise and can discuss how much more to invest in building an information security system. However, small and medium-sized enterprises do not have the capacity for such investment," and added, "Since SMEs are not immune to hacking, the government is fully considering providing financial support at the national level."

When a small or medium-sized enterprise falls victim to a ransomware attack, factories shut down and all work comes to a halt. Nevertheless, 9 out of 10 affected companies do not report the incident to the government, even when threatened by hackers. They quietly pay ransoms ranging from hundreds of millions to billions of won and cover up the incidents. This is due to a combination of concerns over reputational damage, the impact on business performance, and the government's inadequate response capabilities. Security experts agree that the hacking incidents exposed to the public are just "the tip of the iceberg." Asia Economy previously conducted an in-depth report on the reality of hacking damage among SMEs (Concealment - Companies Hide Even When Hacked, May 26 to June 2, 2025) and called for government countermeasures.

Minister Baek indicated that small and medium-sized enterprises are also targets of attacks, stating, "Hackers are not just trying to breach a single large corporation." He added, "In order to address the fundamental issues, joint investigations with the police are necessary," and revealed, "We are preparing comprehensive measures targeting large corporations, SMEs, and startups."

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