Spy agency's access to bank accounts faces backlash

By Kim Jae-won

The national spy agency’s move to access bank accounts faces backlash from lenders, as they worry rich and corporate customers will lose trust in banks.

The National Intelligence Service (NIS) will be able to collect the financial data of suspected terrorist from the financial regulator starting next month after the National Assembly passed a revised bill earlier this month.

“I think rich people will worry about this very much because they are sensitive to their financial transactions,” said a manager of a local bank, asking not to be named. “They definitely do not want their financial data to be open.

“Corporate customers are also concerned about the confidentiality of their banking transactions. They will not be happy if the spy agency can access their financial information.”

According to the revised bill, the NIS can ask the Korea Financial Intelligence Unit (KoFIU) to provide the financial records of suspected terrorists. Critics say the agency could abuse the regulation because of vague criteria about suspects.

But others said it is not a problem because it could help the NIS protect people from possible terrorist attacks.

“I think it is a positive change,” said a director at a foreign bank, asking not to be named. “The agency can prevent crises based on such information. There is no reason to oppose this because the agency will collect such information only from suspected terrorists.”

So far, only four state agencies ― the prosecutors’ office, the police, the National Tax Service and the Financial Services Commission ― can access financial information collected by the KoFIU.

Banks are obliged to report any abnormal financial transactions or those worth 20 million won or more to the KoFIU.

Critics say it is more important to control the spy agency effectively because it has a record of abusing its power, intervening in national politics. Former NIS chief Won Sei-hoon was accused of ordering agents to post tens of thousands of messages online criticizing the opposition party’s presidential candidate, Moon Jae-in, during the election campaign in 2012.

The case is still pending after the Supreme Court overturned a lower court’s ruling that sentenced Won to two and a half years in jail for violating the Public Election Law.