South Korea Rethinks Cyber Insurance as Attacks Surge

Seoul (The Korea Herald) – With cyberattacks on the rise, South Korean insurers are stepping up efforts to expand cyber insurance coverage. Recent high-profile breaches, including at SK Telecom and Seoul Guarantee Insurance (SGI), have exposed major gaps in corporate cyber defense and insurance readiness.

Hanwha General Insurance is leading the push, launching its Cyber Risk Management Center in November — the first dedicated cyber division by a Korean insurer. Samsung Fire & Marine has followed suit, creating a cyber risk team and introducing a policy in May tailored for small and medium-sized businesses.

Despite the efforts, Korea’s cyber insurance market remains in its infancy. According to Munich Re, the country’s total cyber premiums were just $50 million in 2024, only 0.3% of the global market.

Corporate awareness is also low. A 2024 survey by the Korea Internet & Security Agency (KISA) revealed just 14.5% of companies knew about cyber insurance, and only 2.7% had policies in place.

Even among the insured, coverage falls short. SK Telecom held only 3 billion won in cyber insurance, a fraction of the estimated 170 billion won needed for USIM replacements after its data breach.

Lawmakers are now pushing for reforms. “The current 1 billion won coverage falls far too short for large-scale hacks,” said MP Lee Hai-min during a parliamentary hearing, calling for stronger mandates and increased policy limits.

Still, momentum is building. Hanwha reported a 200% surge in cyber insurance revenue since launching its new division. Munich Re forecasts Korea’s cyber insurance market to grow 80% to $90 million by 2027.