South Korean President Lee Jae Myung warns that artificial intelligence models have been used in recent cyberattacks targeting several domestic banks, exposing the personal data of over 67,000 customers. While core payment networks remain secure, hackers exploited third-party portals. Police have launched a full investigation, and financial regulators are urging the sector to deploy AI-driven defenses to counter these evolving threats.
Role of artificial intelligence in the attacks
- ▪South Korean President Lee Jae Myung announced on October 6, 2026, that artificial intelligence models are believed to have been used in recent cyberattacks targeting South Korean banks, including Shinhan Bank and KB Kookmin Bank
- ▪Financial Services Commission Chairman Lee Eog-weon convened an emergency meeting on October 4, 2026, calling for the financial sector to build systems that defend against AI attacks with AI
Scope and targets of the data breaches
- ▪Cyberattacks on South Korean banks exposed data of approximately 25,000 Shinhan Bank customers, 40,000 at Yegaram Savings Bank, 2,200 corporate clients at Welcome Savings Bank, 99 at KB Kookmin Bank, and 89 at Hana Bank
- ▪The cyberattacks on South Korean financial institutions, including Shinhan Bank, targeted less secure third-party systems, such as loan broker portals, rather than the banks' core payment networks
Official investigations and security responses
- ▪The National Office of Investigation and South Korean police launched a full-scale investigation into cyberattacks that breached customer personal information at several commercial banks, including Hana Bank and KB Kookmin Bank
- ▪The Financial Supervisory Service and the Financial Security Institute shared data on 28 unique suspect IP addresses linked to the hacking attempts targeting South Korean banks with the financial sector on October 6, 2026
- ▪The South Korean science ministry and South Korea's cybersecurity agency established a 24-hour emergency response and requested cloud providers to block activity from suspect overseas IP addresses identified by the Financial Supervisory Service
AI threats to financial institutions
- ▪Anthropic stated that suspected Chinese state-backed hackers used Claude code to target approximately 30 organizations worldwide, including financial institutions
- ▪In February 2026, fraudsters used AI-powered impersonation to trick Italian private bank Fideuram out of 95 million euros
Debatable claims
- ▪Deploying AI is necessary to defend against AI-powered cyberattacks
- ▪Open-source AI vulnerability-testing tools do more harm than good
- ▪South Korea's frequent data breaches are driven by systemic domestic security failures
- ▪Banks bear primary responsibility for data leaks occurring on third-party broker systems
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