Nonghyup Bank has yet to fully normalize the operation of its automated teller machines as of Monday, after its network system was paralyzed by cyber attacks on March 20.
According to its spokespeople, about 450 ATMs at Nonghyup Bank’s branches nationwide were still malfunctioning as of 2 p.m., March 25.
In the restoration process, Nonghyup Financial Group lags behind Shinhan Financial Group, which fully repaired glitches in network systems at its two subsidiaries ― Shinhan Bank and Jeju Bank ― within two days from the March 20 hacking incident.
A Nonghyup Bank spokesman attributed the insufficient restoration to a tardy response in the procurement of ATM parts.
“Our ATM-related subcontractors ― LG, Hyosung and Chungho ― are suffering problems in procuring new parts,” he said. “We, however, have normalized around 95 percent of ATMs and other systems nationwide.”
Nonghyup also earlier reported a delayed repair when its online system was severely hit by hacker attacks in 2011, incurring a stern probe of financial regulators.
Concerning cyber security, the nation’s chief financial regulator pledged to make a full-fledged investigation into the two financial groups ― Nonghyup and Shinhan ― and widen the scope of inquiry to the overall financial sector.
“The network system paralysis at some banks last week proved our susceptibility in the financial industry,” said Shin Je-yoon, chairman of the Financial Services Commission.
His remarks came during the top-level meeting of the FSC and the Financial Supervisory Service, an executive arm of the FSC, on Monday.
Shin said the regulators will “make sure it doesn’t happen again by finding out the exact causes through a thorough probe,” hinting at tough punitive measures against several figures at Shinhan and Nonghyup in charge of cyber security.
Regulators have so far found no leak of customer information from the banks’ databases due to the hacking. It has asked the affected banking firms to fully compensate their bank users for transaction delays.
Meanwhile, Shin emphasized the importance of establishing a “strong finance” sector for Korea. He pledged earlier at his inauguration to improve financial soundness and market stability in the financial sector.
In particular, he reiterated that it is time to “change the paradigm” of the local financial market.
According to his oversight policy, major financial groups are likely to be ordered to revamp their management structure, under which parent holding firms arbitrarily control subsidiaries.
In addition, he called for the industry to push forward corporate social responsibility and put more focus on consumer protection by enhancing internal audits on irregular business practices.
By Kim Yon-se (
kys@heraldcorp.com)
