South Korean securities firms and asset managers are expanding board-level cybersecurity training through the Financial Security Institute this year, following a wave of hacking incidents across the financial sector. NH Investment & Securities and Samsung Securities conducted training sessions for board members, while Shinhan Financial Investment participated last year. The shift comes after data breaches at Daesin Securities (38,490 customer records leaked), Hanyang Securities (31 cases), and attacks targeting Mirae Asset Management and Bithumb, prompting regulators to threaten punitive fines for inadequate security measures.
Securities Firms Conduct Board-Level Security Training
The Financial Security Institute expanded its information security education from banks to securities firms this year. NH Investment & Securities and Samsung Securities organized training for their board members, according to financial sector sources. Shinhan Financial Investment participated in similar programs last year.
Financial Security Institute Director Park Sang-won and executives are personally leading the training sessions to meet demand from financial companies. The education targets board members who typically come from financial and legal backgrounds and lack cybersecurity expertise. Board secretariats identified injecting relevant expertise into their top decision-making bodies as an urgent priority.
Data Breaches Affect Multiple Financial Institutions
Daesin Securities recently experienced a leak of personal and credit information affecting 38,490 customers. Hanyang Securities confirmed 31 cases of data exposure involving customer and employee information due to abnormal external access.
The incidents extended beyond securities firms to the broader capital market. Mirae Asset Management and Bithumb, a major virtual asset exchange, were included among hacking targets. Industry experts noted that securities firms maintained a relatively lukewarm attitude toward hacking issues until last year, even when large-scale breaches occurred at Coupang, SGI Seoul Guarantee, and Lotte Card.
AI Threats and Regulatory Pressure Drive Security Focus
Board members are showing increased interest in AI-related risks, as artificial intelligence is being utilized as a tool to exploit specific security vulnerabilities in financial companies during hacking processes. Board members are actively requesting case studies and countermeasures for these threats.
Financial authorities formalized their stance on holding CEOs accountable for risk management failures and announced punitive fines for financial companies with inadequate security capabilities. Government information protection regulations and industry trends have become key concerns for boards.
A securities firm official stated that voices are growing within boards for deeper understanding of hacking trends as the AI era progresses in earnest. The official added that demand for customized education is expected to increase further.
FAQ
Which Korean securities firms conducted cybersecurity training for their boards this year?
NH Investment & Securities and Samsung Securities conducted board-level cybersecurity training through the Financial Security Institute this year. Shinhan Financial Investment participated in similar training last year.
How many customer records were leaked in the Daesin Securities data breach?
Daesin Securities experienced a leak affecting 38,490 customers' personal and credit information. Hanyang Securities separately confirmed 31 cases of data exposure involving customer and employee information due to abnormal external access.
