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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] The Financial Supervisory Service (FSS) has called on the securities industry to provide prompt compensation for investor losses stemming from IT system failures and to implement stronger measures to prevent recurrence, aligning with the Lee Jae-myung administration’s emphasis on investor protection.
At a regular meeting held on the 25th at the Korea Financial Investment Association, the FSS met with IT and cybersecurity executives from securities firms and related institutions to discuss follow-up measures to the Capital Market Electronic Financial Transaction Safety Initiative announced in August.
The FSS urged firms to intensify internal controls and self-inspections to reduce recurring system incidents, emphasizing the need for robust prevention measures—particularly for frequent issues such as software and program errors. Best practices were also shared across the industry.
During the meeting, the FSS provided detailed explanations of the new Integrated Business Continuity Plan (BCP) developed after the Korea Exchange’s system failure in March. The integrated BCP outlines emergency-response procedures in cases of temporary or prolonged disruptions in specific trading markets and clarifies order-handling protocols for securities firms. Implementation—including internal rule updates, system development, testing, and joint emergency drills—will proceed sequentially beginning in the first quarter of next year.
The FSS also briefed firms on repeated violations and major sanctions related to electronic financial incidents and personal data breaches. In terms of investor protection, the regulator stressed the importance of rapid activation of backup systems, swift mitigation of losses, and timely compensation for affected investors.
알파경제 Kim Jisun (stockmk2020@alphabiz.co.kr)
