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Gov`t mulls over imposing fines to 3 card firms for data leaks

Gov`t mulls over imposing fines to 3 card firms for data leaks

Posted January. 21, 2014 06:39,   


On leaks of personal information from three domestic credit card companies, Prime Minister Chung instructed to “give stern punishment to prevent anyone from committing such wrongdoing again.” The government is considering levying “punitive fines” against three card firms, including KB Kookmin Card, Lotte Card, and NH NongHyup Card, from which customers’ personal information was leaked.

On the fiasco of personal information leaks from card companies, Chung instructed Financial Services Commission chief Shin Je-yoon on Monday to “inform details of damage to the people, and significantly toughen punishment for those responsible.” The financial regulatory authority will beef up oversight to prevent leaked information from generating secondary damage, including loan fraud and voice phishing.

“The Financial Services Commission, the Financial Supervisory Service, and three credit card companies should form a taskforce and thoroughly investigate the cause of the accident and find who should be held responsible,” Chung said. “Criminal punishments on those who leaked the information should be significantly toughened as well.”

On the three card firms, including KB Kookmin Card, the prime minister said, “I have asked the government to urgently prepare fundamental measures to prevent recurrence at a degree that could be acceptable to the people, including levying of punitive fines,” thus hinting at unprecedentedly stern disciplinary action in store. “There has been no case where fine was imposed on financial institutions for leaks of customer information thus far,” said a source at the Prime Minister’s Office. “The strongest punishment available under law will be imposed for this incident.”

The ruling and opposition parties are also unanimously demanding the government to impose stern punishment. Ruling Saenuri Party Chairman Hwang Woo-yea said, “The authority should thoroughly investigate the accident to find who is responsible, and take stern actions against those involved, and thereby send alarm over negligent management of costumer information to financial institutions.” said Park Gwang-on, spokesman of the main opposition Democratic Party, “The financial authority should behave in a way that it takes responsibility on its own, and devise practical measures including stern punishment of those who leaked information.