South Korea to Strengthen Cybersecurity Regulations Following Major Data Breaches

South Korea announced plans to overhaul its cybersecurity policies by introducing harsher penalties for companies that inadequately manage personal data and by encouraging firms to increase cybersecurity investments. The government aims to establish comprehensive preventive measures rather than relying on temporary fixes, following a series of serious data breaches involving major corporations.

Second Vice Minister of Science Ryu Je-myung highlighted these initiatives during a joint press conference with the Financial Services Commission (FSC), addressing recent breaches at SK Telecom Co., KT Corp., and Lotte Card Co. He stated, "The science ministry, in collaboration with top security experts, will undertake a thorough review of the current security framework to implement fundamental solutions."

This policy revision follows President Lee Jae Myung's directive to devise long-term strategies to minimize damage from hacking attempts. The government intends to strengthen sanctions against companies that intentionally postpone reporting breaches and will empower authorities to launch investigations even in the absence of disclosure.

Ryu added, "We also plan to introduce incentives encouraging businesses to proactively invest in cybersecurity enhancements." Complementing this stance, FSC Vice Chairman Kwon Dae-young emphasized that punitive measures would reflect the societal impact of security breaches. He remarked, "To prevent setbacks from hacking as South Korea pursues leadership in artificial intelligence, collaboration among government, financial institutions, and related entities is essential to build a robust security infrastructure."

Recent incidents reported include KT Corp.'s disclosure that the victims of a mobile payment security breach have increased to 362 individuals, with damages estimated at approximately 240 million won (US$173,000). Lotte Card Co., the nation's fifth-largest credit card issuer, revealed that personal data of around 3 million customers was compromised last month.

Kwon assured that the government will rigorously monitor Lotte Card's response and enforce prompt protective measures for affected customers. He cautioned, "If investigations uncover any regulatory violations, stringent disciplinary actions will be pursued to set a precedent."

Furthermore, SK Telecom Co. confirmed in April that sensitive data of its entire user base may have been exposed during a cyberattack. Recently, a hacker group attempted to distribute client information via Telegram, raising further concerns over data security.

Together, these measures signal South Korea's commitment to strengthening cybersecurity governance and protecting citizens' data amidst mounting digital threats.