Financial Services Commission Holds Emergency Meeting on Lotte Card Data Breach: "Strict Sanctions for Violations"

Response Measures Discussed Under the Leadership of Vice Chairman Kwon Daeyoung
Full Compensation for Damages and Company Sanctions to Be Pursued

The government has announced that it will hold an emergency meeting regarding the Lotte Card data breach incident, thoroughly identify all violations related to information security, and impose strict sanctions.

On September 18, the Financial Services Commission stated that Vice Chairman Kwon Daeyoung presided over a meeting at the Seoul Government Complex in Jongno-gu, Seoul, where relevant agencies and experts shared detailed information about the Lotte Card data leak and discussed response measures.

During the meeting, the main focus was on ensuring that Lotte Card promptly informs the public about the exact scale of the data breach and any damages, and that it implements effective measures to prevent damages and protect consumers in the event of any harm, so as to prevent public anxiety.

Lotte Card reported to the Financial Services Commission and the Financial Supervisory Service on September 1 that approximately 1.7GB of data had been leaked due to a hacking incident that occurred between August 14 and 15.

The Financial Supervisory Service and the Financial Security Institute began an on-site investigation on September 2, examining the details and circumstances of the data leak as well as any violations of security management. During this investigation, it was confirmed that a total of 200GB of data had been leaked, including the initially reported 1.7GB. An unidentified hacker infiltrated Lotte Card’s online payment server (WAS), installed malicious software, and extracted a total of 200GB of information.

The leaked data included the personal credit information of approximately 2,969,000 individuals, among whom about 283,000 people (9.5%) also had their card PINs and CVCs leaked. However, Lotte Card implemented enhanced identity verification measures to prevent unauthorized transactions immediately after discovering the incident, and as of now, no cases of fraudulent transactions have been confirmed. There have also been no reports of unauthorized use filed with the Lotte Card customer center.

The government emphasized that it will prioritize the prevention of consumer harm resulting from the data breach above all else, and will supervise and monitor Lotte Card to ensure that effective consumer protection measures are implemented promptly and without fail. In particular, the government explained that it would thoroughly identify all violations related to personal credit information management and information security through inspections by the Financial Supervisory Service, and take strict action accordingly.

Vice Chairman Kwon stated, "Financial security and information protection are critical issues, as even minor negligence by a financial company can cause significant consumer harm and undermine trust in the financial system. It is especially important to respond meticulously to ensure that consumers who trust and use financial companies do not suffer any damages."

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