FSS to investigate data exposure by Samsung Securities and KB Kookmin Card

The headquarters of the Financial Supervisory Service (FSS) located on Yeouido, Seoul / Yonhap

By Anna J. Park

The Financial Supervisory Service (FSS) said it would look into recent private information leakages by Samsung Securities and KB Kookmin Card, vowing to hold them fully responsible for the accidents.

The financial regulator said on Thursday afternoon that once it grasps how the information leakage accidents took place at the two firms, they will be ordered to swiftly compensate any customer who suffers damages from the accidents.

It would also direct the two companies to immediately overhaul their systems in order to prevent any more accidents of a similar nature from happening.

“The FSS will strengthen its checkups on mobile-based financial platforms, such as program tests as well as objective qualification procedures. If a major violation of related regulations is confirmed, the financial authority plans to make companies that committed violations take full responsibility, according to the law and principles,” an official from the FSS said.

According to Samsung Securities, the private information ― including account numbers, deposits, as well as rates of return ― of 344 customers were exposed to those who used Samsung's newly-launched “Monimo” app for 15 hours from Monday afternoon to Tuesday morning. The application is a joint mobile-based platform developed for the customers of Samsung Group's four financial companies: Samsung Fire & Marine Insurance, Samsung Life, Samsung Card and Samsung Securities.

The brokerage company of Samsung Group said it took necessary measures on Tuesday morning. The company explained that the leakage happened due to a computerized error during the firm's system upgrading process.

“Even though there hasn't been any damage related to the incident, we are deeply sorry about the private information leakage,” the company's statement reads.

On a similar note, a customer of KB Kookmin Card said she could browse through someone else's detailed card payment information as well as personal information, including their address, when she logged onto her card app earlier this week. The case became known to the public on Wednesday with the report by a local news media outlet.

KB Kookmin Card said that the accident was attributed to a temporary error resulting from a technological issue, and that it seems to be the only such case. The company vowed to do an overall checkup of its mobile application system.