Nonghyup clients to take IBM to court

Country manager to be replaced

By Kim Yoo-chul

International Business Machines (IBM), the New York-based multinational tech and consulting giant, plans to implement a series of management changes including the replacement of its country chief.

This is in response to the forced shutdown of the network of Korea's National Agricultural Cooperative Federation (NACF), locally known as Nonghyup or NH Bank, entirely, when a cyber attack crippled the bank's tech system last month.

Nonghyup had outsourced its technology systems to IBM and the laptop of one of the contractors had been the focus of investigations.

Now, Nonghyup customers are planning to bring IBM to court in a class action with some 1,600 clients seeking compensation for the system meltdown.

"The situation is getting serious for IBM. As far as I know, the current country manager Lee Hwi-sung has offered to resign from the top post," said a top-ranking industry executive, asking not to be identified, Wednesday. Lee was appointed to in 2005

IBM headquarters in New York is considering promoting senior corporate executive Han Seok-jae to the top post, according to another source who is familiar with the situation.

"IBM needs restructuring in the aftermath of the Nonghyup incident. Also, it is being tasked to raise profits and to improve communication with headquarters," said the person on condition of anonymity, citing sensitivity of the issue.

The sources added more follow-up measures will come but only after the nomination of the new country president.

"It's been expected that some small-scale reshuffling involving employees and the business structure will take place."

Han has extensive tech-related experience. He joined IBM in 1987 and is now working in New York after having handled hardware- and server-related businesses in Korea, according to the sources.

A local representative from IBM declined to comment whether restructuring of units and personnel is in the works.

Court battle

No matter what, chances are high that affected Nonghyup customers will file a lawsuit in a Seoul court because some classified personal data were leaked due to the mishandling of a laptop owned by an IBM employee.

The attack at the bank affected some five million credit card accounts, leaving customers unable to use their cards, check their bank account balances, make payments or even receive cash advances.

The Seoul Central District Prosecutors' Office recently claimed that North Korean hackers were behind the attack.

The office said hackers planted a virus in a laptop owned by the IBM worker who was in charge of maintaining the network at the lender, eventually causing it to order the network meltdown.

"Nonghyup hasn't changed its decision to bring the issue to court. We will proceed with steps to gain compensation from IBM for the damage," said a Nonghyup spokesman.

"Well, even if the attack was initiated by North Korean hackers, the IBM employee may very well be blamed as the laptop turned into a 'Zombie PC' and subsequently used to launch the attack," said a Seoul lawyer, asking not to be identified.

According to the announcement by the office, the troubled laptop was infected with a virus in October last year and key additional data had been gradually leaked since then.

On the other hand, industry executives and officials said there is a possibility that the case expands because IBM Korea may ask local prosecutors to re-launch the probe to take the spotlight off it.

``But, IBM will lose its credibility at least in Korea. Leading local financial institutions, banks and even government offices are paying 20 or 30 percent premium to use IBM systems. Now, people are asking if it is really worth it,’’ said an official at the Kookmin Bank, one of the nation’s leading banks.

The IBM representative also declined to comment.

한국 IBM, 수장 교체 검토

글로벌 대표 기업인 IBM이 조만간 한국 지역 사장을 교체할 것으로 알려져 관심이 집중되고 있다.

4일 익명을 요구한 업계 관계자는 ``이휘성 한국IBM 대표가 곧 교체될 예정’’이라며 ``후임으로는 IBM본사에서 근무하고 있는 한석제 전무가 현재로써는 유력한 것으로 알고 있다’’고 말했다.

또 한국IBM은 수장 교체를 포함한 후속 조치 마련에도 착수한 것으로 알려졌다고 이 관계자는 덧붙였다.

이에 대해 한국IBM측은 논평을 거부했다.

시기적으로 다소 미묘하기는 하지만 농협이 한국IBM을 상대로 최근 전산사태에 대한 강경한 대응의지를 천명하는 등 이번 신임 대표 선임 논의는 이 사태와 매우 밀접하다는 것이 정설이다.

농협은 ``책임소재가 있다는 것이 드러나면 법적 책임을 묻겠다는 것이 농협의 기본 입장’’이라며 ``아직까지는 피해규모 산정이 되지 않았기 때문에 내부 평가가 마무리되는 대로 한국IBM에 대한 피해보상 요구 검토를 진행할 것’’이라고 밝혔다.

즉 농협이 이번 사고의 최초원인제공자인 한국IBM을 상대로 구상권을 행사하기 위한 책임규명 성격의 소송을 제기할 가능성이 크다는 뜻이다.

한 전무는 1987년 IBM 본사에 입사했다.

이후 시스템 엔지니어와 솔루션, 중대형 시스템 영업을 두루 거치고 2005년에 한국IBM 유닉스 서버 담당 임원으로 들어와 2008년부터는 한국IBM의 하드웨어 사업부(STG)를 총괄한 바 있다. 2010년에는 국내 비즈니스 성과를 인정받아 다시 뉴욕 본사로 복귀한 것으로 알려졌다.