The Financial Supervisory Service asked securities firms and exchanges to draw up measures to prevent a recurrence so that similar incidents do not occur, through root-cause analysis and countermeasures, for computer system accidents that frequently occur such as program errors.
The Financial Supervisory Service (FSS) and the Korea Financial Investment Association held a fourth-quarter regular meeting on Nov. 25 to enhance safety in capital market IT and information security.
The meeting was a follow-up to the plan to enhance safety in capital market electronic financial transactions released in Aug., and was held to check repeated rule violations in the securities industry and to call for stricter internal controls.
About 150 people attended the event, including multiple exchanges such as the Korea Exchange (KRX) and NEXTRADE (NXT), IT and information security executives (CIOs and CISOs) from all securities firms, and officials from the Korea Financial Investment Association and the Financial Security Institute.
The Financial Supervisory Service (FSS) shared cases of system accidents, repeated violation types, and cautions during inspections and sanctions, emphasizing the implementation of comprehensive measures such as voluntary checks and corrective actions and stronger internal controls. In particular, for frequent incidents such as program errors, it called for thorough root-cause analysis and the establishment of measures to prevent recurrence, and reiterated the importance of minimizing investor harm.
The meeting also introduced key points of the capital market integrated business continuity plan (BCP). If a problem occurs in a specific execution venue, the main point is to establish an emergency response system in which the exchange and securities firms promptly notify members and investors and route orders to a normal market. It will be implemented in stages starting in the first quarter of next year.
Securities firms shared the status of strengthening internal controls and implementing comprehensive measures, and proposed necessary improvements to related systems. They also agreed on the importance of preventing electronic financial accidents and protecting investors, and discussed the need for active responses. The Financial Security Institute provided guidance on recent breach cases in the financial sector, cybersecurity vulnerabilities, and cautions during response.
An official at the Financial Supervisory Service (FSS) said, "We will maintain a close cooperation system with the securities industry to enhance the safety of electronic financial transactions, and will respond proactively to ensure the stability of the capital market's IT infrastructure and protect investors."