Seoul, Aug 25 (IANS) South Korea’s brokerages account for 90 per cent of all damage caused by technological accidents in the country’s financial sector, data showed on Monday.
South Korean securities firms experienced a total of 429 electronic financial accidents from 2020 to 2024, according to the data from the Financial Supervisory Service (FSS).
The number of such instances at brokerages has jumped from 66 in 2020 to 100 in 2024. In the first half of this year alone, 58 instances of such accidents were reported from brokerages, the data showed, reports Yonhap news agency.
Total damage caused by accidents in cyberspace over the 2020-2024 period amounted to 29.5 billion won (US$21.3 million), with brokerages accounting for 89 percent of the total, according to the data.
Notably, the top 10 brokerages in terms of capital assets accounted for 47 percent of all damage that occurred during the five-year period, the FSS said.
The most cited cause of the accidents was program errors, followed by external factors such as system failures at overseas brokerages or the Korea Exchange (KRX).
The FSS said it plans to regularly monitor IT and security risks at companies in the financial investment sector and establish a comprehensive system to tackle tech-related risks.
It also warned of stern measures against companies causing major accidents or failing to take due diligence in preventing tech-related risks.
“The recent rise in cyber accidents in the financial sector undermines investor trust and efforts to vitalize the capital market,” FSS Deputy Gov. Seo Jae-wan said.
Meanwhile, South Korean stocks jumped more than 1 per cent on Monday after Federal Reserve Chair Jerome Powell hinted at a possible rate cut during the U.S. bank’s meeting next month. The local currency sharply gained against the U.S. dollar.
The benchmark Korea Composite Stock Price Index (KOSPI) added 41.13 points, or 1.3 percent, to close at 3,209.86, extending its winning streak to a third day.
Trade volume was light at 217.3 million shares worth 7.91 trillion won ($5.71 billion), with gainers beating winners 598 to 271.
–IANS
na/
