The criteria for imposing fines on financial institutions that violate security obligations aimed at preventing cybersecurity incidents will be strengthened.
On September 3, the Financial Services Commission announced at its 15th regular meeting that it had discussed a reform plan to impose fines for violations of security obligations under the Electronic Financial Transactions Act on a per-case basis for each individual supervisory regulation breached.
Previously, when calculating the number of violations of security obligations under the Electronic Financial Transactions Act, only one fine was imposed, even if multiple supervisory regulations were breached, on the grounds that the violations were considered identical in nature.
However, through this reform, the criteria for imposing fines have been strengthened so that violations of security obligations are now determined based on the specific obligations stipulated in each individual regulation.
According to the reform plan, going forward, violations of security obligations will only be recognized as identical if all three conditions are met: the violations are identical under the law, there is proximity in time and place between each violation, and there is a unity of intent for each act. The revised plan takes effect from today.
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