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SAT, 2014-10-25  KST

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Credit card companies promise to compensate for any financial loss caused by data leakage

Updated: 2014-01-21 06:29:25 KST
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The CEOs of KB Kookmin Card, Lotte Card and NH Nonghyup Card spoke out on Monday to assure the public in the wake of the nation's largest ever personal information leak.
They said they would cover any financial losses caused to their customers in entirety, and are also considering compensation for any psychological damage the breach may have caused.
Later Monday, more than two dozen KB Financial Group managers, including the CEO of KB Kookmin Card Shim Jae-oh, along with the CEO of NH NongHyup Card Sohn Kyung-ik offered to resign from their posts.
The information of at least 20 million Korean bank and credit card users was leaked.
That affects almost all economically active people in a country of 50 million.
The Financial Supervisory Service says the information taken includes the names, phone numbers, credit card numbers, addresses, and even banking records of customers.
Financial Services Commission Chairman Shin Je-yoon and Financial Supervisory Service Governor Choi Soo-hyun are among the millions affected.
The government has warned that those found responsible will face extremely tough criminal penalties.
Prime Minister Chung Hong-won on Monday ordered the chief of the nation's regulatory body, the Financial Services Commission, to go after those responsible in the strongest possible way and inform the public about the exact damages and circumstances of the leak.
Chung also asked for strong countermeasures to ensure such incidents don't happen again.
Regulators have already launched investigations into security measures at the affected firms.
The Financial Supervisory Service told Arirang TV that they are working closely with the Financial Services Commission and that they are looking into tougher fines and a suspension of business for the firms who had their data leaked.
State prosecutors meanwhile have moved to reassure the public that the incident has not resulted in the leakage of any information to criminal organizations. for now at least.
Kim Yeon-ji, Arirang News.


Reporter : yjkim@arirang.co.kr

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