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| The headquarters of the Financial Services Commission in Seoul |
'Firms may face over W100 bil. in fines'
By Na Jeong-ju
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Shin Je-yoon |
The firms to be scrutinized include banks, credit card issuers, insurance firms and brokerages as well as consumer financing companies.
"We will examine virtually all Korean financial firms, including those who suffered consumer data leaks recently," an FSC official said. "The probe, which will continue for weeks, is aimed at addressing systemic problems in protecting consumer information. Their practices of collecting data will also be checked."
Based on the investigation, the FSC plans to unveil a set of measures next month to better protect consumer data, the official said.
The remarks came one day after the FSC vowed stern punishment over any data leaks at financial firms, warning of heavy penalties for firms and the dismissal of top executives.
Later on Thursday, FSC Chairman Shin Je-yoon said firms may face over 100 billion won in fines if they are found to have used stolen data for marketing activities.
"There will be no ceiling in fines to be imposed on these firms," Shin told lawmakers at the National Assembly. "That means the firms could be slapped with a fine of 100 billion won or more."
Regulators say the personal information of millions of customers, including bank account numbers and addresses, was leaked from KB Koomin Bank, KB Kookmin Card, Lotte Card, NH NongHyup Bank and the Korean units of Citibank and Standard Chartered Bank.
Since the data theft case surfaced last week, about a million credit card users have canceled their cards with the firms amid worries that their data could be used in crimes, the FSC said.
The government has tried to dispel their concerns by repeatedly claiming that the stolen data had not be distributed, vowing to fully compensate victims for any financial loss stemming from the data theft.
The FSC said that it has sent its staff to the firms to prevent possible damage from the data leaks.
The Korean firms have extended their business hours on weekdays and will remain open this weekend to address complaints from consumers. The FSC and its executive body Financial Supervisory Service have also set up a joint team which will help the firms set up countermeasures around-the-clock.
KB Kookmin Card, Lotte Card and NH NongHyup Bank's card division have provided free payment messaging services to its cardholders since the theft case surfaced. They also plan to exempt annual membership fees ranging from $5 to $10 from its card users.
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