Hyundai Capital Execs Face Disciplinary Action

Korea’s Financial Supervisory Service plans to take disciplinary action against Hyundai Capital for negligence in a recent major cyber attack by hackers.

The FSS says Hyundai Motor’s joint-venture financial arm and its executives will receive “heavy penalties” for not having adequate security measures in place, as required by federal electronic trading regulations.

An investigation by the FSS found hackers had infiltrated the Hyundai Capital computer system and stole the personal and financial files of some 1.75 million loan customers between March 6 and April 7.

The FSS says Hyundai Capital failed to take adequate action even after learning its computer system had compromised.

FSS says the hackers not only stole the vast number of customer files but also implanted a malicious virus in the Hyundai Capital system that automatically was downloaded to the computers of customers who accessed their files.

The FSS says no financial losses have been reported. However, the incident has caused considerable turmoil and consumer distrust and serious future problems are anticipated, an official says.

Hyundai Capital, a JV between Hyundai Motor and GE Capital, is Korea’s largest secondary financial market lender. It specializes in auto, mortgage and personal loans.