Nearly 3 Million Customers’ Personal Data Exposed in Credit Card Company Breach
Share this article:
The world of finance has once again been shaken by a massive data breach. This time, South Korean credit card provider Lotte Card , backed by private equity fund MBK, confirmed that the personal information of nearly 2.97 million customers was exposed in a hacking incident, according to Reuters. Established in December 2002 as a venture licensed by American Express and Lotte Department Store , the company has grown to be one of the country’s major credit card issuers.
Extent of the Breach
Out of the affected customers, around 280,000 individuals had highly sensitive details compromised, information that could potentially be misused for fraudulent activities. Lotte Card’s CEO, Cho Jwa-jin, addressed the media, acknowledging the severity of the situation and outlining the company’s immediate steps.
Company’s Response Plan
“What does the company plan to do?” was the pressing question at the press briefing. CEO Cho assured customers that the organisation’s first priority would be to reissue credit cards to those affected. Additionally, Lotte Card pledged to cover damages, offer interest-free instalment options, and has committed to a 110 billion won ($79.30 million) security budget spread across the next five years.
At present, MBK Partners, a Seoul-based private equity firm, holds a 59.8% stake in the company, according to regulatory filings.
Government’s Strong Reaction
The breach has not gone unnoticed by the country’s leadership. South Korean President Lee Jae Myung directed his administration to implement “fundamental comprehensive measures to minimise hacking damage,” highlighting the urgency of addressing growing cybersecurity threats.
A Global Problem
Data breaches, however, are not an isolated problem for South Korea. Across the globe, including in India, businesses are pouring resources into strengthening their cybersecurity frameworks. Despite these efforts, the risks remain high.
According to a recent IBM report, the average cost of a data breach for Indian organisations surged by 13% in 2025, reaching ₹22 crore compared to ₹19.5 crore the previous year. This rising cost underscores how deeply data theft is impacting economies, companies, and individuals alike.
The Bigger Picture
As cybercriminals grow more sophisticated, companies worldwide must recognise that investing in security is not optional - it is essential. From financial losses to shaken consumer trust, the consequences of breaches are long-lasting. Incidents like the one involving Lotte Card serve as a stark reminder that in today’s digital age, no organisation can afford to take data protection lightly.
Extent of the Breach
Out of the affected customers, around 280,000 individuals had highly sensitive details compromised, information that could potentially be misused for fraudulent activities. Lotte Card’s CEO, Cho Jwa-jin, addressed the media, acknowledging the severity of the situation and outlining the company’s immediate steps.
Company’s Response Plan
“What does the company plan to do?” was the pressing question at the press briefing. CEO Cho assured customers that the organisation’s first priority would be to reissue credit cards to those affected. Additionally, Lotte Card pledged to cover damages, offer interest-free instalment options, and has committed to a 110 billion won ($79.30 million) security budget spread across the next five years.
At present, MBK Partners, a Seoul-based private equity firm, holds a 59.8% stake in the company, according to regulatory filings.
Government’s Strong Reaction
The breach has not gone unnoticed by the country’s leadership. South Korean President Lee Jae Myung directed his administration to implement “fundamental comprehensive measures to minimise hacking damage,” highlighting the urgency of addressing growing cybersecurity threats.
A Global Problem
Data breaches, however, are not an isolated problem for South Korea. Across the globe, including in India, businesses are pouring resources into strengthening their cybersecurity frameworks. Despite these efforts, the risks remain high.
According to a recent IBM report, the average cost of a data breach for Indian organisations surged by 13% in 2025, reaching ₹22 crore compared to ₹19.5 crore the previous year. This rising cost underscores how deeply data theft is impacting economies, companies, and individuals alike.
The Bigger Picture
As cybercriminals grow more sophisticated, companies worldwide must recognise that investing in security is not optional - it is essential. From financial losses to shaken consumer trust, the consequences of breaches are long-lasting. Incidents like the one involving Lotte Card serve as a stark reminder that in today’s digital age, no organisation can afford to take data protection lightly.
Next Story