Banks Have Only Minimum Cover for Hacker Attacks

Most financial companies underestimate the risk of damage from cyber attacks and take out only the minimum insurance coverage required by law. The mandatory insurance for commercial banks against damage to their customers caused by hackers covers only up to W2 billion a year (US$1=W1,283).

Financial authorities on Sunday said the current Electronic Financial Transactions Law and regulations of the Financial Supervisory Service put minimum insurance coverage against hacking at W2 billion for major commercial banks, Agricultural Cooperative Federation, and Industrial Bank of Korea, W1 billion for credit card companies and the Korea Development Bank, W500 million for securities firms, and W100 million for insurance companies.