Korean credit cooperative reports data breach affecting 400 insurance clients
The incident is the second attempted attack on the federation’s systems in a matter of weeks, following an earlier attempt that its security team reportedly thwarted last month
SEOUL, October 18, 2026 – The Korean Federation of Community Credit Cooperatives [KFCC] has confirmed a data breach affecting about 400 insurance customers following a hacking attack on its systems.
The incident is the second attempted attack on the federation’s systems in a matter of weeks, following an earlier attempt that its security team reportedly thwarted last month.
Hackers struck again on Saturday, October 10, using a new set of Internet Protocol [IP] addresses. The KFCC confirmed the data breach two days later and reported it to financial authorities on October 13.
“We sincerely apologise to our members who use the Saemaul Geumgo mutual aid services,” Lim Jin-woo, credit and mutual aid chief executive officer of the KFCC Central Association, said in a notice published on the federation’s website.
“Although the Central Federation has made every effort to protect customers’ personal [and credit] information, we have become aware of a data breach affecting some customers and are notifying you via our website,” he added.
According to Lim, the information exposed varies from one customer to another and includes customer numbers, names, dates of birth, encrypted resident registration numbers, account numbers, account balances, telephone numbers, home and work addresses, and email addresses.
The federation said it was notifying affected customers individually by text message and pledged to provide full compensation for any losses customers suffer as a result of the breach.
Lim said the federation had blocked the IP addresses used in the attack, as well as associated proxy connections, after discovering the breach.
It had also conducted additional security checks and introduced remedial measures to address vulnerabilities on its website.
“The Central Federation takes this incident very seriously and is committed to the protection of personal [and credit] information,” Lim said.
He added that the federation was reviewing its entire personal and credit information protection system, together with its management procedures, while strengthening security measures to prevent a recurrence.
“We once again sincerely apologise for the concern caused to our mutual aid members and commit to upholding a more responsible approach to protecting personal [and credit] information and safeguarding our members’ rights and interests,” he said.
Authorities suspect that the IP addresses used in the attack originated from China, Thailand and South Korea.
The incident comes amid a wider wave of cyberattacks targeting South Korean financial institutions, with some reportedly involving artificial intelligence [AI].
OK Savings Bank also detected unauthorised access attempts around the same time as the attack on the KFCC, while the number of financial institutions in South Korea with confirmed data breaches has risen to 10.
In response to the growing threat, the country’s Financial Services Commission is convening an emergency meeting to review cybersecurity measures across the financial sector.
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