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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, April 11, 2026 — South Korea’s financial regulator has issued a preliminary sanction notice against Lotte Card over a massive data breach affecting 2.97 million customers, reigniting scrutiny over its largest shareholder, MBK Partners.
According to financial industry sources, the Financial Supervisory Service (FSS) recently notified Lotte Card of proposed penalties, including a 4.5-month business suspension, fines of around 5 billion won, and potential individual sanctions.
The breach was first identified in August last year during server maintenance, when the company detected a hacking incident and reported it to authorities. Subsequent investigations found that personal information of 2.97 million customers had been leaked. Of those, approximately 280,000 individuals had sensitive financial data exposed, including card numbers, expiration dates, CVC codes, and PIN-related information.
The FSS is expected to review the sanctions at its disciplinary committee on April 16, with final approval to follow at a regular meeting of the Financial Services Commission.
The severity of the proposed penalties has drawn attention, as they would mark the toughest regulatory action since the 2014 mass data breach involving major card issuers, when firms including Lotte Card, KB Kookmin Card, and NH Nonghyup Card were each handed three-month suspensions.
The case has also brought renewed focus on MBK Partners, which acquired Lotte Card and has faced ongoing criticism over governance and investment priorities. Lawmakers and observers have questioned whether cybersecurity investment declined under private equity ownership, raising concerns about a short-term profit focus.
MBK has denied such claims, stating that the allegations are not grounded in fact.
Additional controversy has emerged over financial transactions between Lotte Card and MBK-affiliated companies. Reports indicate that Lotte Card extended approximately 140 billion won in credit to MBK affiliates over the past five years, with a significant portion directed toward Homeplus.
Critics have pointed to the use of purchase cards and other short-term financing mechanisms, suggesting the existence of internal capital circulation structures within MBK’s portfolio, rather than reliance on external borrowing.
These concerns have been amplified by ongoing issues surrounding Homeplus, one of MBK’s key investments, which has faced scrutiny over funding strategies, governance practices, and the broader implications of leveraged buyouts.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
