(ATTN: ADDS more comments in last 5 paras, new photo)
SEOUL, Oct. 19 (Yonhap) -- The chief of South Korea's financial watchdog on Monday pledged to strengthen cybersecurity at local financial institutions through thorough investigations into recent hacking incidents that compromised about 100,000 cases of personal data.
"The recent security breaches have caused great concern among the public," Financial Supervisory Service (FSS) Gov. Lee Chan-jin said in his opening remarks at a parliamentary audit.
"We will swiftly address security vulnerabilities through a thorough investigation into the causes."
Lee said he would encourage financial institutions to strengthen their internal security capabilities using artificial intelligence (AI) technologies to respond effectively to AI-powered cyberattacks.
"We will consult with the Financial Services Commission to review various measures aimed at encouraging financial institutions to increase their investment in security and personnel," he added.
Lee's remarks came after about 16 local financial institutions, including banks, savings banks and insurance companies, were hit by a series of cyberattacks earlier this month, exposing about 100,000 cases of personal data across the industry, including email addresses, names and phone numbers.
Financial Supervisory Service (FSS) Gov. Lee Chan-jin speaks during a parliamentary audit on the FSS at the National Assembly in Seoul on Oct. 19, 2026. (Yonhap)
Regarding single-stock leveraged exchange-traded funds (ETFs) launched in May, the FSS governor acknowledged that the products partly contributed to sharp market volatility in June and July.
"(The launch of such ETFs) was partly behind that," Lee said in response to a question from Rep. Kim Jae-sub.
Lee said the FSS began reviewing the listing of the single-stock ETFs in April, before the Korea Exchange (KRX) completed its preliminary examination. The review was expedited to meet the government's schedule for the ETFs' launch on May 27.
"We advanced the review process to meet the timeline," Lee said, adding that the FSS found no irregularities when it examined the KRX's preliminary examination results.
Single-stock ETFs, linked to Samsung Electronics Co. and SK hynix Inc., had been widely viewed as a key factor behind sharp fluctuations in the domestic stock market. Amid rising criticism, financial authorities imposed strict measures to raise the entry bar and ease volatility.
Financial Supervisory Service (FSS) Gov. Lee Chan-jin (L) takes an oath during a parliamentary audit on the FSS at the National Assembly in Seoul on Oct. 19, 2026. (Yonhap)
brk@yna.co.kr
(END)