81% of Ransomware Attack Targets Are SMEs... Government Also Strengthens Support

Government to Distribute 'Data Safe' in Response to Private Sector Demand
Security Experts Warn of "Closing the Barn After the Horse Is Lost"
Recommend Internal Training and Use of Vaccine Solutions

[Asia Economy Reporter Minyoung Cha] "Large corporations allocate budgets and support personnel for information security, but many small and medium-sized enterprises (SMEs) tend to act only after suffering damage, like locking the barn after the horse is stolen. Contrary to the term 'smart powerhouse,' many people do not even know the term 'ransomware,' so proactive responses from companies are crucial." (A representative from a domestic security company)

As of last month this year, 81% of reported ransomware attacks targeted SMEs. According to the Korea Internet & Security Agency (KISA) on the 5th, the number of reported ransomware incidents in Korea last year was 127, more than triple the previous year. This year, from January to July, there were 97 cases, of which 79 involved SMEs. Considering cases where companies hesitate to disclose damage due to fear of disadvantages, the total number of incidents is expected to be even higher. There are also frequent cases where companies are threatened by having their customers' or patients' personal information exposed on the dark web as leverage.

Ransomware is a compound word of 'ransom' and 'software (SW).' It is a hacking method that encrypts important data to make it unusable and then demands money. While hacking for political threats was common in the past, since last year, ransomware attacks with economic motives targeting industries such as vulnerable distribution companies, general private hospitals, and manufacturing facilities have increased. In particular, the recent rise of 'Ransomware-as-a-Service'?which assists from ransomware creation to distribution?has led to the division and specialization of criminal activities.

Accordingly, the government has prepared a 'Ransomware Response Enhancement Plan' that includes preventive support measures. First, to support data backup, which has been highly demanded by the private sector, the government will distribute 'Data Vaults' to SMEs. This will provide systematic support not only for data backup but also for data encryption and data recovery. Eleven companies, including JiranSecurity, GiwonTech, ADT Caps, and MarkAny, will also participate in providing free security solutions to SMEs.

In the long term, the government plans to promote the enactment of the '(tentative name) Cybersecurity Basic Act.' This will include systematic management and operation plans for cybersecurity, such as establishing a basic plan, strengthening public-private cooperation systems including information sharing, and enhancing the management of key information and communication infrastructure. The government also plans to organically link the private (C-TAS) and public (NCTI) cyber threat information sharing systems next year, along with sector-specific Information Sharing and Analysis Centers (ISACs) in fields such as healthcare and finance. Professor Seungwoo Son of Chung-Ang University’s Department of Industrial Security said, "The idea of creating a law to oversee cybersecurity has been discussed for over ten years but stalled due to concerns about personal privacy infringement. It will be important to include governance issues such as establishing a control tower and a public-private information sharing system."

Separately from government support, there are also points raised that companies’ regular responses are most important. A security company representative emphasized, "Installing cloud-based antivirus solutions, such as cloud-type vaccines, can reduce costs," adding, "Since there are solution products that charge based on usage, it is necessary to actively utilize them." Another representative pointed out, "Large corporations regularly educate employees on how to deal with malicious emails repeatedly. They have well-established systems, such as including failure to report malicious emails immediately in personnel evaluations, but SMEs tend to be weak in these areas."