Regulator to require financial firms to post details of security breach online

The financial regulator will have local financial companies notify the public of details on security breaches on their websites for a certain period of time as part of an effort to beef up their network safety, its chief said Friday. "We'll hold the management responsible in the event of a security breach due to negligence and have them disclose details on the accident and the reasons for it on their website for one month," Gov. Choi Soo-hyun of the Financial Supervisory Service (FSS) said at a seminar.  His remarks come at a time when securing a safe online network system has become one of the top priorities for South Korean financial companies here, after some of their websites, including that of Shinhan Bank Co., were hacked by an unknown malware in late March, although no personal data were leaked. The incident prompted the regulatory authorities to come up with countermeasures to potential cyber attacks, as the majority of bank users in Korea also have access to online banking.  "Online banking has grown fast to an extent that it accounts for 80 percent of all financial transactions in the country, with the importance of online security increasing," the governor said. The FSS plans to bolster regular inspections on network security at local financial companies by inducing them to invest in more manpower in IT sectors, Choi added.