South Korean banks are taking steps to bring cybersecurity to a new level as they try to keep up with fintechs and address new threats arising from their interaction with the crypto space. A number of institutions are adopting unprecedented measures including the integration of blockchain technologies, Korean media reported.
South Korean Banks Boost Cybersecurity to Facilitate Digitalization
Faced with challenges stemming from the digitalization of the financial sector, commercial banks in South Korea are stepping up their efforts to improve security in the cyberspace. According to a report by the Korea Herald, the move is a bid to better compete with Korean fintech companies which have been developing rapidly. The new requirement for lenders and crypto exchanges to work together on the issuance of real-name accounts for traders is another motive.
Woori Bank is one of the institutions that have been taking extraordinary measures. On Monday, Woori announced the adoption of SOAR (security orchestration, automation and response), an advanced set of technologies enabling automatic collection and filing of security data. The lender said the integration would allow it to upgrade its cybersecurity platform and move beyond its previous monitoring-focused approach.
KB Kookmin Bank, another leading banking group in South Korea, has been working on its own automatic cybersecurity system which is based on artificial intelligence. The project is part of its 551.9 billion won ($488.5 million) investment in IT services in 2021. The lender also uses technology from the Korean startup Everspin designed to prevent phishing and fraud attempts through fake apps imitating its mobile services.
Two other banks, Shinhan and Hana, have opted to implement blockchain technologies which they hope will provide protection against hacking and reduce security gaps. Shinhan Bank has launched three blockchain-related services, including an identity…