Korean Banks Plan Higher Cybersecurity Spending After AI-Linked Attacks
Major South Korean banks are preparing larger security budgets and workforces after customer data incidents, including an attack that reportedly used advanced AI tools.
South Korea’s major banks are considering higher cybersecurity spending and larger security teams after a series of hacking incidents exposed customer information and renewed concern about the financial sector’s defenses.
Shinhan Bank, Hana Bank and KB Kookmin Bank have all reported customer data leaks or exposure this month. The incidents are prompting lenders to reassess both technology budgets and staffing as attacks grow more sophisticated.
Shinhan disclosed on October 1 that personal information belonging to about 25,000 customers had been leaked. The compromised data included names, phone numbers and annual incomes. The attackers reportedly used advanced artificial intelligence tools, adding urgency to questions about whether existing systems can keep pace with rapidly evolving methods.
KB Kookmin plans to lift its cybersecurity budget above 100 billion won, or roughly $74 million, in 2027. That would represent an increase from 86.07 billion won this year. Shinhan is preparing to allocate a record amount to cybersecurity, while Hana expects to invest tens of billions of won in stronger security systems next year.
The lenders also intend to add cybersecurity personnel in 2027. The combination of higher technology spending and expanded specialist teams suggests banks are seeking broader defenses rather than relying on a single security product or response measure.
The planned investments follow President Lee Jae Myung’s call over the weekend for a thorough investigation into the attacks. Financial authorities are already examining indicators that may help identify those responsible.
The Financial Supervisory Service said it identified internet protocol addresses in 12 countries that are suspected of links to the AI-assisted hacking. Investigators, however, could not determine the locations associated with some of the addresses. That uncertainty illustrates the difficulty of tracing attacks that may pass through infrastructure spread across multiple jurisdictions.
For the banking industry, the immediate challenge is to contain the consequences of the recent incidents and protect affected customers. The longer-term task is to upgrade security capacity while threats are changing, particularly as attackers gain access to AI tools that can accelerate or refine intrusion attempts.
The scale of the planned budgets also shows that cybersecurity is becoming a larger operational priority for Korea’s biggest lenders. Their 2027 spending decisions will be closely watched for signs of how financial institutions translate the lessons of this month’s breaches into stronger systems, more personnel and faster detection of suspicious activity.