South Korea's Data Crisis: Why 3 Million Cardholders Face Security Risks

In a meeting with heads of credit card firms and credit finance companies, Lee Eog-weon, chairman of the Financial Services Commission (FSC), said his agency will sternly punish any negligence in consumer protection, reports Yonhap news agency.

His remarks came as Lotte Card Co., the country's fifth-largest card issuer, in September revealed personal data of some 3 million customers had been leaked in a hacking incident.

The FSC earlier warned that it would take stern measures against any rule violations by Lotte Card, vowing to impose the highest-ever penalty on the card issuer should there be any serious violation.

Lee said the data breach case shed light on card firms' complacency in consumer protection.

"Card firms have been lax in protecting consumers while focusing on cost savings and others," Lee said.

The chief regulator also stressed that card firms need to cut commission rates for small merchants and low-rated consumers.

Meanwhile, South Korea's customs authorities on Thursday announced plans to reduce paperwork requirements and speed up the customs clearance process for imports, a move aimed at lessening regulatory burdens on local businesses.

Under a revised law currently undergoing administrative notice, procedures for re-importing returned goods will be simplified, according to the Korea Customs Service (KCS).

Previously, companies were required to submit documentation if the total value of multiple items combined in a single import declaration exceeded $150.

Under the revision, the requirement will apply only when each item category exceeds $150, easing the burden for companies that frequently re-import multiple products at once, the KCS said.

In addition, goods that are repaired in countries with which South Korea has an free trade agreement (FTA) and brought back to the country will no longer require related documents to be submitted, the KCS said.

The KCS expects the revision to reduce logistics costs and ease burdens on businesses.

--IANS

pk

- IANS