Lotte Card's business outlook dims as data breach sparks financial, regulatory strain
Lotte Card is confronting heightened operational risks after a recent cyberattack compromised the personal information of nearly 3 million customers, analysts said Sunday. The incident is expected not only to drive up short-term costs, but also to heighten credit downgrade risks and regulatory exposure. The most immediate concern is the near-term cost burden as the company scrambles to contain fallout from the incident. At a press conference on Thursday addressing the data breach, Lotte Card announced customer support measures — including card reissuance, annual fee waivers and interest-free services — which are projected to cost the company several billion won. "Even excluding these one-off costs, the planned investment of 110 billion won ($79.2 million) over the next five years in information security is expected to pose a medium- to long-term financial burden," said Ahn Tae-young, an analyst at Korea Ratings. "The customer data breach is expected to serve as a significant obstacle to the company's performance recovery." Meanwhile, Korea's three major credit rating agencies — Korea
