FSC chief-network security

SEOUL, March 25 (Yonhap) -- South Korea's financial regulator will check network security conditions at local financial companies from scratch following last week's hacking of computer networks at several banks here, its chief said Monday.

"The network paralysis at banks last week proved our vulnerability in the financial sector," Shin Je-yoon, the chairman of the Financial Services Commission (FSC), said at a meeting. "We need to make sure it doesn't happen again by finding out the exact causes through a thorough investigation."

His remarks came a few days after computer networks at five financial firms and major broadcast companies in Korea were hacked and paralyzed for hours on Wednesday.

The FSC found that so far there has been no leak of customer information from the banks' databases due to the hacking. It has asked the affected banking firms to fully compensate their bank users for transaction delays.

Shin also reiterated the importance of establishing a "strong finance" sector for Korea. He pledged earlier at his inauguration to improve financial soundness and market stability in the financial sector.

Touching on troubled Cyprus, he noted that it is the people who suffer the most from a financial crisis and said that it is vital to pre-empt any potential factors that might lead to turmoil.

The FSC said it will work with the Financial Supervisory Service, its executive body, to keep close tabs on risk factors, including cross-border capital flows, and hold check-up meetings as often as possible to brace for any market turbulence.

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