FSS Summons Kakao, Toss, and K-Bank, Urges "Strengthening IT Stability"

Internet Banks Hold 'IT Internal Control Meeting'

"If Major Incidents Occur Due to Inadequate Internal Controls, Strict Measures Will Follow"

The Financial Supervisory Service has called together internet banks such as KakaoBank, Toss Bank, and K-Bank, along with their affiliated securities firms, to urge the strengthening of internal controls over information technology (IT).

Stone signboard in front of the Financial Supervisory Service headquarters in Yeouido, Seoul. Financial Supervisory Service

On April 1, the Financial Supervisory Service announced that it held a meeting with the Chief Information Officers (CIOs) and audit officers of five institutions: K-Bank, KakaoBank, Toss Bank, KakaoPay Securities, and Toss Securities.

Lee Jongoh, Deputy Governor for Digital and IT at the Financial Supervisory Service, stated, "Internet banks must establish a level of IT stability and risk prevention that matches their scale of growth," emphasizing, "Recently, most system failures have occurred due to insufficient basic controls, so we ask that you proactively carry out autonomous control activities such as IT audits to prevent the recurrence of similar incidents."

To strengthen internal IT controls at internet banks and related institutions, the Financial Supervisory Service requested that they analyze the impact in advance and conduct third-party verifications when introducing or updating new functions.

They also asked the firms to review their emergency response plans to ensure the effectiveness of measures such as the rapid expansion of IT resources in the event of a surge in transaction volume.

Furthermore, in the event of a system failure or other incidents, the Financial Supervisory Service instructed that institutions promptly restore systems, actively inform financial consumers about alternative measures and compensation, and thoroughly prepare for the possibility of cyberattacks such as DDoS or ransomware.

A representative from the Financial Supervisory Service stated, "To prevent the recurrence of IT incidents and to protect financial consumers, we will shift our supervisory and inspection systems to focus on preemptive prevention," adding, "In the future, if a major IT failure occurs due to insufficient basic internal controls, we will respond strictly."

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