The Financial Services Commission (FSC) of South Korea has suspended operations of three credit card companies for the next three months, after their involvement in data theft of credit card holders’ accounts in the country.
The three companies, KB Kookmin Bank, Lotte Card and NH Nonghyup Card, have been banned from issuing new credit cards and debit cards or extending loans until 16 May 2014. In addition, each of the firms have been penalised KRW6m ($5,640).
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FSC said that the three companies neglected their legal duties of preventing any leakage of customer information.
The commission added that following the completion of investigations, the company executives involved in the breach may be punished.
Sensitive user data, including personal ids, bank account numbers, addresses and credit ratings of around 20 million people were stolen between October 2012 and December 2013.
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By GlobalData
