FSC approves establishment of financial security agency

The top financial regulator said Tuesday that it has approved the establishment of an independent financial security agency aimed at enhancing information management and protection capabilities in the financial sector.

The Financial Security Institute will be launched on April 10, said the Financial Services Commission.

The FSI serves a comprehensive role in managing the entire flow of financial information provided by 180 banks, insurers, brokerage houses and credit card firms.

It will break down information barriers among the sectors and integrate their information sharing and analysis functions in order to take immediate actions against financial breaches and data leaks.

"The FSI, the FSC and financial institutions will have improved information sharing and crisis response ability," the FSC said.

"The FSI will help all member companies and institutions share experiences about financial failures or accidents and prevent similar cases in the future."

The establishment of the FSI came as financial authorities have vowed to tighten financial security and protection of consumer rights and to enhance information sharing, after a series of online hacking attacks against local banks and a massive private financial data leak.

So far, each sector has their own information analysis center, as the Korea Financial Telecommunications & Clearing Institute deals with the banking industry and Koscom handles data processing of brokerage houses.

In 2009 and 2011, online services of South Korean banks, including Nonghyup Bank, were paralyzed by denial-of-service attacks, but the banking industry has not shared their experience and the related information with other financial circles.

In January 2014, more than 100 million customers' data was found to have seeped from three major credit card firms, including No. 2 KB Kookmin Card Co., in the largest-ever data leak in the country. (Yonhap)