<관련 영문 기사>

Data-leaking firms face suspensions

KB, NH, Lotte Cards to be halted for three months while regulator looks to toughen penalties

KB Kookmin Card, NH NongHyup Card and Lotte Card, the three companies involved in the recently detected information leak of more than 20 million customers, will be suspended for three months, starting as early as next month.

The punishment came as the Financial Services Commission on Wednesday announced a set of preventative measures in a bid to better protect customer data and tighten regulation over financial firms.

The FSC also said financial companies responsible for customers’ personal data leak may in the future face a business suspension of up to six months, as well as a punitive fine amounting to 5 billion won ($4.7 million) or more.

“All of the data that was leaked from the three disputed card companies has been fully retrieved to block the possibility of additional abuse,” said FSC chairman Shin Je-yoon in a press briefing.

Financial Supervisory Service Gov. Choi Soo-hyun also claimed that the leaked data did not include crucial information such as credit card pin numbers or card validation codes, and that those responsible were found before they could further distribute the collected data.

“The government will nevertheless implement a set of security measures so that the people may continue to use financial services without fear in the future,” Shin said.

Among the three disputed card firms, the government will impose a three-month business suspension, which is the maximum sanction possible under the current law, he said.

Also, the government will submit a bill to the provisional parliamentary session next month to raise the ceiling for business suspensions to up to six months.

The watchdog also pledged to step up the amount of punitive fines for financial company officials who are responsible for customer data leak.

Those who leak data will have to pay up to 5 billion won, a significant leap from the current ceiling of 10 million won. The amount is likely to be much higher for deliberate offenses, according to the FSC.

Incumbent and former chiefs and executives who are in charge at the time of a data leak will face severe disciplinary actions, including dismissal or suspension, the financial chief added.

“The massive information leak in itself causes a significant threat to public security and thus should be regulated through sanctions,” he said.

The stringent measures come amid the public’s escalating fury over the recently disclosed personal information leak which affected 15 million people and more. Up to 2 million have applied to unsubscribe or have new credit cards issued.

In a gesture to take responsibility for the scandal, the chiefs and executives of the corresponding companies stepped down on Monday.

(By Bae Hyun-jung  tellme@heraldcorp.com)