Financial regulators on Wednesday launched an inquiry into the National Agricultural Cooperative Federation, also called Nonghyup or NH Bank, which suffered a significant problem with in its online transaction systems.

Nonghyup has seen its network systems, including Internet banking and automated teller machines, break down since around 5 p.m. Tuesday.

The bank had to make an official apology as it failed to restore some of its core customer services until Wednesday afternoon.

The Financial Supervisory Service dispatched a group of inspectors to Nonghyup headquarters and its cyber service providing center in Seoul later in the day.

 

While market observers speculated that the breakdown was possibly due to cyber attacks, an FSS official clarified that “the regulatory body has yet to secure the details,” downplaying the possible hacking.

“The probe will be focused on uncovering the factors for the breakdown, customers’ damage and the bank’s countermeasures against the accident,” he said.

Nonghyup staffers said they believe the breakdown could be attributable to an online server’s simple fault.

The case is drawing wide interest among the public as it occurred several days after the serious hacking incident at Hyundai Capital.

Last week, Hyundai Capital recently a cyber attack in which personal information of about 420,000 customers and passwords of 13,000 have been hacked.

The automobile loan-oriented firm has been under an intensive probe from regulators.

An issue is next regulatory step of the FSS, which is also considering dispatching inspectors to Hyundai Card which offers partly connected services in coordination with Hyundai Capital.

In the wake of the frequent woes in network systems at financial companies, the FSS expected to take tougher oversight on electronic financing.

In case of Hyundai Capital and Hyundai Card, an FSS official pointed out the fact that the two financial firms’ information technology systems have been managed by the same IT service provider ― Hyundai AutoEver.

He also alleged that a large portion of Hyundai Capital customers hold credit cards issued by Hyundai Card, adding, “Furthermore, services of the two companies have been connected in some parts.”

By Kim Yon-se (kys@heraldcorp.com)