Korean credit card firms suspended over data theft

South Korean regulators will order three consumer finance companies to suspend operations for three months after the nation’s biggest theft of information on credit card holders.

The Financial Services Commission will inform the card units of KB Financial Group, NH Financial Group and the Lotte Group of its decision today, FSC Secretary General Koh Seung Beom told reporters in Seoul today. The companies have 10 days to appeal the ruling before the FSC meets on Feb. 14 to confirm the penalty…

The card companies will be barred from adding subscribers and marketing insurance policies or travel products from Feb. 17 once penalties are set on Feb. 14, according to the commission. Services to existing clients will continue…

The breaches prompted regulators to review all financial firms to examine how they protect customer data. The FSC also asked companies to voluntarily refrain from phone marketing of financial products by March as people are becoming increasingly concerned about information security, the regulator said in a statement on Jan. 26.

Thousands and millions of Koreans, outraged over lax security from these companies have canceled their credit cards. As they should. The Korean government is using its legal power as regulator to shut down these incompetents at least for a little while. Sufficient to cost them dearly.

Mail me a penny postcard when the United States government demonstrates the same level of concern for ordinary citizens whose privacy and safety has been so compromised.

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