Five Major Banks' Information Security Budgets This Year: Shinhan Ranks Last at KRW 40.591 Billion After 'Data Leak of 25,000 Customers'
IT DAILY ·
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Among the five major commercial banks, KB Kookmin Bank had the largest information security budget this year at KRW 86.075 billion, while Shinhan Bank had the smallest at KRW 40.591 billion.
The gap between KB Kookmin Bank and Shinhan Bank was KRW 45.484 billion, and Hana Bank had the highest information security budget share at 12.2%.
Shinhan Bank and Woori Bank cut their information security budgets this year, and the information security budget execution rate of the eight banks last year was 69.0%, falling for a second consecutive year.
As hacking attacks spread across the financial sector, the information security budgets of the five major commercial banks this year were compared. The related data were submitted to the Financial Supervisory Service and secured by Rep. Park Dae-chul of the People Power Party, a member of the National Assembly's Strategy and Finance Committee.
According to the data, KB Kookmin Bank allocated the largest budget at KRW 86.075 billion. It was followed by NH Nonghyup Bank in second place with KRW 80.134 billion, Hana Bank in third with KRW 63.635 billion, and Woori Bank in fourth with KRW 61.5066 billion.
Shinhan Bank had the smallest allocation at KRW 40.591 billion. Although Shinhan Bank experienced a personal information leak involving about 25,000 customers, it still had the smallest information security budget among the five major banks after the leak.
The gap in information security budgets between KB Kookmin Bank and Shinhan Bank was calculated at KRW 45.484 billion. KB Kookmin Bank's budget was more than twice Shinhan Bank's.
Among each bank's total IT budget, Hana Bank had the highest share for information security at 12.2%, followed by NH Nonghyup Bank at 10.5% and KB Kookmin Bank and Woori Bank at 9.9% each. Shinhan Bank had the lowest share at 9.1%.
This year, Shinhan Bank and Woori Bank cut their information security budgets. Shinhan Bank's budget fell by about 10.4% from KRW 45.294 billion to KRW 40.591 billion, while Woori Bank's budget was reduced by 21.7% from KRW 78.659 billion to KRW 61.566 billion. By contrast, KB Kookmin Bank, Hana Bank and Nonghyup Bank expanded their information security budgets.
Meanwhile, hacking incidents have continued to occur across the financial sector, and criticism has grown over the level of security investment and the management system for vulnerabilities. According to an announcement by the Financial Services Commission, 16 companies were confirmed to have suffered breaches, including Shinhan Bank, KB Kookmin Bank, Busan Bank and Hana Bank; Ye-garam Savings Bank, Welcome Savings Bank, DB Savings Bank and OK Savings Bank; Hyundai Capital and KDB Capital; PFCT and Mouda; Brightfix; Streami and Frabank; and Saemaeul Geumgo Central Association. The scale of the information leak was about 100,000 cases.
Rep. Park Dae-chul pointed out that the share of information security spending in financial firms' IT costs is insufficient. He stressed that regulations centered only on ex post sanctions have limitations in responding to increasingly sophisticated hacking threats. He added that policy incentives are needed to encourage voluntary increases in information security investment by financial companies.
However, it cannot be concluded that budget size is directly linked to a company's information security level. It is noted that simply increasing budgets is not enough, and that unless the money actually leads to investment, the effect of strengthening security will also be limited.
This information cites data submitted by the Financial Supervisory Service to the office of Rep. Lee Yang-soo of the People Power Party. The eight targeted banks are KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, NH Nonghyup Bank, Kakao Bank, K Bank and Toss Bank. The budget execution rate for information security at these eight banks last year was calculated at 69.0%. The information security budget execution rate fell from 74.5% in 2023 to 70.8% in 2024 and then to 69.0% last year, declining for a second consecutive year.
The information security budgets of the banking sector rose from KRW 328.2 billion in 2023 to KRW 397.8 billion last year, increasing 21.2% over two years. In contrast, the banking sector's information security spending rose only from KRW 244.6 billion to KRW 274.4 billion, a 12.2% increase.
Looking at actual spending and execution rates compared with last year's budgets, Kookmin Bank had a budget of KRW 67.6 billion and spent KRW 39.3 billion, resulting in an execution rate of only 58.1%. Nonghyup Bank had a budget of KRW 75.3 billion and spent KRW 48.1 billion, for an execution rate of 63.9%. Shinhan Bank had a budget of KRW 45.3 billion and spent KRW 31.7 billion, for an execution rate of 69.9%.
Source: IT DAILY · Kim Ho-jun
Original: https://www.itdaily.kr/news/articleView.html?idxno=242247
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Source: IT DAILY
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