Korea Business News Agency - NSP NEWS.

(Seoul=NSP NEWS) = KB Securities and Kiwoom Securities recorded the lowest proportion of IT security investment relative to overall IT spending among Korea’s top 10 brokerages over the past two years, according to industry data.

An analysis by NSP News of Financial Supervisory Service (FSS) figures on IT expenditures for 2023 and 2024 shows that KB Securities and Kiwoom Securities allocated just 7.48% and 7.49%, respectively, of their IT budgets to information security in 2023. The following year, the figures remained nearly unchanged at 7.18% and 7.38%, both still in the 7% range.

These ratios were the lowest among the nation’s top 10 securities firms, placing both companies consistently at the bottom of the rankings. By comparison, the industry average hovered in the 9% range, while Lotte Card—hit by a recent cyber breach—reported that its average information security investment ratio from 2020 to 2025 was in the 11% range.

A KB Securities spokesperson said the firm has not yet finalized its IT budget for next year but expects to expand spending, with approximately 18 billion won earmarked for information security.

A representative from Kiwoom Securities noted that the company has adhered to the 7% threshold recommended by the Financial Security Institute and plans to continue allocating more than 7% of IT expenditures to security.

Lawmakers and regulatory officials, however, criticized the two firms’ approach. They argued that maintaining a 7% ratio is “a relic of the analog era” and reflects complacency in today’s era of digital finance. “Substantive improvements are needed based on global standards to protect against cyberattacks and other security threats,” they emphasized.

Rep. Min Byung-deok of the National Assembly’s Political Affairs Committee added, “Every security incident in the market today ultimately stems from weakened defenses caused by cost-cutting. The securities industry needs stronger, enforceable requirements to ensure firms are committed to investing in information security.”

By Eun-young Huh(eunyoung114@nspna.com) and Seongsu Lim(forest@nspna.com)

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