Seoul: South Korea's brokerages are responsible for 90 percent of the damage caused by technological mishaps within the country's financial sector, recent data revealed.
According to Yonhap News Agency, South Korean securities firms reported a total of 429 electronic financial incidents between 2020 and 2024, as per data from the Financial Supervisory Service (FSS). These incidents in brokerages increased from 66 in 2020 to 100 in 2024, with 58 such occurrences reported in just the first half of this year.
Over the four-year period, the total financial damage from cyberspace accidents reached 29.5 billion won (US$21.3 million), with brokerages accounting for a staggering 89 percent of that figure. The FSS stated that the top 10 brokerages, ranked by capital assets, were responsible for 47 percent of the total damage.
The primary causes of these accidents were identified as program errors, followed by external factors including system failures at overseas brokerages or the Korea Exchange (KRX).
The FSS announced plans to consistently monitor IT and security risks within companies in the financial investment sector. It intends to implement a comprehensive system to address tech-related risks and warned of strict measures against firms causing significant accidents or neglecting due diligence in preventing such risks.
"The recent rise in cyber accidents in the financial sector undermines investor trust and efforts to vitalize the capital market," stated FSS Deputy Gov. Seo Jae-wan.