The Financial Services Commission will decide as early as next month on the level of sanctions against Lotte Card, where personal information was leaked in a hacking incident. The Financial Services Commission is currently preparing a final sanction plan, taking into account the scope of application of relevant laws.
According to the financial authorities on the 8th, the Financial Services Commission (FSC) is reviewing a plan to give final approval to the sanction plan against Lotte Card at next month's regular meeting. The Financial Services Commission (FSC) is coordinating the final level of sanctions by comprehensively considering the scope of application of relevant laws, including the Specialized Credit Finance Business Act, the Electronic Financial Transactions Act, and the Credit Information Use and Protection Act. It is known that there are some differences of opinion within the Financial Services Commission (FSC) over the level of sanctions, raising the possibility that the sanctions could be eased.
The Financial Supervisory Service notified Lotte Card in advance at the Sanctions Review Committee in Apr. of a 4.5-month business suspension and a 5 billion won penalty surcharge, among other measures. This is close to the maximum level under current law. A six-month business suspension is the highest level of disciplinary action under the Specialized Credit Finance Business Act, and a 5 billion won penalty surcharge is the maximum level under the Electronic Financial Transactions Act. The disciplinary plan that passed the Financial Supervisory Service (FSS) sanctions review will be finalized after a resolution at the Financial Services Commission (FSC) regular meeting.
At Lotte Card in Sep. last year, information on 2.97 million people—nearly one-third of all customers—was leaked. Of these, Lotte Card estimated that a total of 280,000 customers could be subject to fraudulent card use because key information such as card number, expiration date, and CVC (the three-digit number on the back of the card) was exposed.
An official at the Financial Services Commission (FSC) said, "We are reviewing the level of sanctions, taking into account the scope of application of relevant laws."