E-Land Group Vice Chairman Choi Jong-yang Leads TFT Team
Group-wide Email Sent for the First Time This Year
[Asia Economy Reporter Cha Min-young] "No matter how difficult it is, we must solve this hardship with our own strength."
Recently, Choi Jong-yang, Vice Chairman of E-Land Group, drew attention by sending an internal email encouraging employees who have been struggling following a ransomware attack on E-Land Group and expressing a determination to overcome the crisis. This is the first time this year that Vice Chairman Choi has sent a group-wide email to all employees. As employee morale sharply declined and uncertain information circulated, he took the lead to resolve the situation.
According to industry sources on the 29th, Vice Chairman Choi stated in an email titled "Message to Employees Regarding Ransomware" that "I am well aware that employees on the front lines are experiencing great difficulties due to the recent ransomware terror inflicted on the group," and expressed "deep gratitude for the hard work of employees doing their best despite the difficult circumstances."
He added, "The group is not yielding to the ransomware distributors who threaten us in various ways and is committed to responding through legitimate means, doing its utmost to restore the internal intranet and data," emphasizing, "The ransomware distributors have been continuously threatening the company and demanding huge sums of money for the past six days. If we resolve this by paying, it is clear that they will threaten more companies and individuals, and our company could again become a target of another cyber terror attack."
On the early morning of the 22nd, E-Land Group was attacked by ransomware believed to be based overseas, leading to the emergency closure of 23 stores, half of the total 48 stores including NC Department Store and NewCore Outlet. Subsequently, a TFT team led by Group Chairman Choi Jong-yang was formed, and an investigation was requested from the police authorities. E-Land has currently completed the first phase of recovery and has begun work to restore systems to their state prior to the ransomware incident.
The ransomware group, known to be backed by overseas actors, has continuously demanded money using customer information as leverage. However, E-Land firmly denies that encrypted customer information has been leaked. Due to security concerns and cooperation with police investigations, detailed information has not been disclosed.
Damage to domestic and international industries caused by ransomware is increasing. In the domestic distribution sector, point-of-sale (POS) systems are known to be the primary targets of ransomware attacks. In fact, in early May 2017, a distribution company’s POS system was attacked by ransomware, and they were asked to pay 10 million won to unlock the encryption. Security industry warnings to be cautious of ransomware continue. According to the Korea Internet & Security Agency’s Cyber Threat Trends Report, as of the first quarter of this year, ransomware has expanded beyond information and communication (IT) systems to industrial production and critical infrastructure sectors. Notably, since 2017, incidents affecting industrial production and core infrastructure have noticeably increased.
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