Lotte Card given prior notice of penalty over massive data breach

▲ Lotte Card Co.'s corporate sign (Yonhap)

Lotte Card-penalty notice

Lotte Card given prior notice of penalty over massive data breach

SEOUL, April 9 (Yonhap) -- Lotte Card Co. has been notified by the financial watchdog of around 5 billion won (US$3.38 million) in financial penalties and a business suspension of over four months over its massive data leak, informed sources said Thursday.

The Financial Supervisory Service (FSS) recently sent the prior notice to the credit card firm, with the penalties set to be finalized by the Financial Services Commission (FSC) in the near future, according to the local industry sources.

Lotte Card's online payment system was hacked last year, resulting in the leak of personal information of about 2.97 million customers.

It was also found that the company did not take sufficient encryption measures for the log files.

Earlier this month, the state data protection watchdog separately decided to impose a penalty of 9.62 billion won on Lotte Card.

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