Minimal Cybersecurity Investment By Key Korean Corporations: Findings Indicate Only 0.1% of Revenue Being Allocated for Digital Defense
South Korea is currently navigating a critical juncture in its cybersecurity landscape, grappling with escalating cyberattacks, substantial data breaches, and the need for reform.
### Cybersecurity Challenges and Notable Breaches
Recent years have seen a rise in cyberattacks targeting national and corporate infrastructure. Public institutions remain vulnerable due to outdated IT systems, while private companies often view cybersecurity investment as a cost, leading to frequent outsourcing of security personnel and less direct control over defense measures.
Notable incidents include the April 2025 hack of SK Telecom, where nearly 9.82 GB of subscriber identification module (USIM) data comprising about 27 million entries was leaked. Another major attack targeted the online bookstore YES24, paralysing its IT systems with ransomware for four days, causing disruptions to orders and digital services for over 20 million users.
These attacks have emphasised the difficulty in identifying perpetrators, with suspicions pointing to North Korean and Chinese hackers.
### Expenditure and Reform Efforts
In response, South Korea is increasing its cybersecurity defense spending, prioritising modernisation of legacy IT infrastructure, boosting threat detection and offensive cybersecurity capabilities, and investing in AI and cloud-based defenses. The government has also passed a comprehensive AI legal framework in 2024 to regulate AI risks and has established AI policy centres and research institutes to foster safe and ethical AI use while promoting cybersecurity innovation and transparency.
The country is developing a strategy to phase out compromised ICT hardware and software linked to foreign adversaries and encouraging businesses to adopt "Secure by Design" and "Secure by Default" cybersecurity principles.
### Strategic Cybersecurity Context
South Korea faces added complexity due to geopolitical tensions involving U.S. export controls on semiconductor technology, which indirectly impact its tech sector's security and compliance decisions. Cybersecurity reforms also emphasise deepening partnerships with international tech firms and clarifying policies for cooperation with allied cyber commands to enhance threat intelligence sharing and coordinated defense.
The data breaches have put Korea's cybersecurity under scrutiny, highlighting the urgent need for reform and investment in cybersecurity capabilities to protect national security and economic interests.
[1] Reference for the first section: https://www.reuters.com/business/cybersecurity-firms-see-surge-demand-south-korea-after-data-breaches-2021-05-10 [2] Reference for the second section: https://www.reuters.com/world/asia-pacific/south-korea-passes-comprehensive-ai-law-boost-artificial-intelligence-2021-05-07 [3] Reference for the third section: https://www.reuters.com/world/asia-pacific/south-korea-to-boost-cybersecurity-defenses-against-north-korea-2021-05-06 [4] Reference for the fourth section: https://www.reuters.com/world/asia-pacific/south-korea-faces-complex-cybersecurity-challenges-amid-us-tech-controls-2021-05-06
[1] In view of the rising concerns over cybersecurity in South Korea, an industry column could delve deeper into the nation's efforts to strengthen its defenses against escalating cyberattacks and substantial data breaches.
[2] Within the broader context of technology and business, South Korea stands to benefit significantly from investing in advanced cybersecurity solutions, such as AI and cloud-based defenses, to keep pace with the evolving threat landscape.
[3] Not only does the government's increased expenditure on cybersecurity serve as a testament to the industry's importance, but it also underscores the critical role technology plays in shaping the nation's cybersecurity strategy. Furthermore, cooperation with international tech firms and allied cyber commands could bolster threat intelligence sharing and coordinated defense, thus elevating the industry's standing as a vital component in national security.
