Eight Out of Ten Companies Reporting "Ransomware Attacks" Are SMEs

It has been revealed that, over the past three years, 8 out of every 10 reported ransomware incidents in South Korea occurred at small and medium-sized enterprises (SMEs).

According to data submitted by Democratic Party lawmaker Kwon Chilseung to the Korea Internet & Security Agency (KISA) on June 29, out of 804 ransomware reports received from 2022 through June 18, 655 cases (82%) originated from SMEs. The number of ransomware incidents reported by mid-sized companies was 130, accounting for about 16% of the total. Reports from large enterprises amounted to just 19 cases, representing only 2% of the total.

Ransomware is a type of malicious software, combining the words "ransom" and "software," that encrypts data on a user's computer and demands payment in exchange for decryption. Recently, Yes24, the country's largest online bookstore with around 20 million members, also suffered a ransomware attack that paralyzed its application and internet network.

There are concerns that SMEs are relatively more vulnerable to prevention and response compared to large enterprises, due to having fewer resources and personnel dedicated to security. Lawmaker Kwon stated, "It is urgent to establish effective measures to strengthen SMEs' ability to respond to ransomware," and added, "Institutional solutions should be explored to guarantee consumer rights and prevent situations like the Yes24 incident, where consumers are unable to access purchased digital content."