 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul – Lotte Card CEO Cho Jwa-jin issued a public apology on September 4 following a major hacking incident that exposed weaknesses in the company’s information security management. However, criticism over the company’s inadequate cybersecurity practices continues to intensify.
Underscoring the seriousness of the situation, President Lee Jae-myung also addressed the breach during the 9th Senior Presidential Aides’ Meeting held at the Yongsan Presidential Office. Referring to a series of recent security incidents, he stated: “Companies that suffer repeated security breaches must face punitive fines.”
President Lee further stressed the need for stronger cybersecurity investments, saying: “We must reconsider whether the perception of security investments as unnecessary costs is at the root of such incidents. Despite frequent breaches, the response and preventive measures remain alarmingly inadequate, leaving the public deeply concerned.”
In his apology to customers, CEO Cho acknowledged: “This incident stemmed from our insufficient security management,” while pledging full compensation for any damages incurred.
Industry experts have also raised concerns over potential shortcomings in Lotte Card’s information protection framework, pointing to possible failures in security governance.
Meanwhile, scrutiny has emerged regarding attendance at board-level discussions on cybersecurity oversight. According to filings with the Financial Supervisory Service (FSS), Lotte Card’s board received reports in February 2024 on the results of the financial sector’s annual security assessment. However, Kim Kwang-il, Vice Chairman of MBK Partners and an outside director at Lotte Card, was absent from that meeting, as well as from a May 2023 session reviewing the company’s internal security evaluation results, reportedly due to scheduling conflicts.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
