South Korean police said Tuesday they plan to refer a series of hacking cases involving major banks and other financial institutions to the country's newly established Serious Crimes Investigation Agency after identifying suspected violations of financial security laws.
The National Office of Investigation said it had identified possible violations of the Electronic Financial Transactions Act in addition to the Information and Communications Network Act, under which police had already been investigating the breaches.
The decision follows a legal review and consultations with the Financial Services Commission and affected financial institutions.
The move comes amid a string of cyberattacks that have affected 16 financial companies, including Shinhan Bank, KB Kookmin Bank, Hana Bank and BNK Busan Bank, as well as savings banks and credit finance firms.
Financial regulators said last Wednesday that approximately 100,000 personal records had been exposed. The incidents have raised concerns about cybersecurity at South Korea's major financial institutions.
The latest police decision centers on whether the systems targeted by hackers qualify as electronic financial infrastructure under Korean law.
Many of the attacks targeted the internal systems used by the financial institutions rather than their core banking networks, raising questions about whether the breaches fell within the new agency's jurisdiction.
Police initially determined that the affected systems did not qualify as national critical infrastructure. However, the Financial Services Commission subsequently advised that they could fall under the Electronic Financial Transactions Act, making the cases eligible for investigation by the Serious Crimes Investigation Agency.
Under the law, police must notify the agency when they identify a suspected offense within its jurisdiction. The agency has seven days after receiving written notification to decide whether to take over the investigation, although the deadline can be extended.
Police said they would continue investigating while the agency decides whether to take over the case.
The National Office of Investigation launched a formal investigation on Oct. 6 and has since expanded its dedicated team to 43 investigators, including personnel handling digital forensics and international cooperation.
The hacking incidents have also prompted a broader review of cybersecurity across South Korea's financial sector.
In an emergency inspection of 555 financial firms, regulators identified security deficiencies at 130 of them, including failures to apply security patches.
Financial authorities have announced plans for a comprehensive review of security systems at financial institutions.
mjh@heraldcorp.com
