Kiwoom Securities experienced consecutive system failures in its digital platforms despite introducing an information and communications technology (ICT) risk management framework in 2024, according to the company's 2026 sustainability report. Last month, customers faced mobile trading system (MTS) login errors, followed by margin deposit processing delays that triggered forced liquidations in some accounts. The incidents occurred as the South Korean brokerage's customer base expanded to approximately 16.2 million accounts in 2025 from 14.9 million in 2024, while financial authorities cited the firm for violations related to electronic transaction safety requirements.
Kiwoom Securities Introduces ICT Risk Management Framework in 2024
Kiwoom Securities implemented an ICT risk management system in 2024 to strengthen oversight of digital financial services, according to the 2026 sustainability report released on the date of publication. The company defined operational risk as the possibility of financial losses or business disruptions caused by errors, failures, or inadequacies in internal processes, personnel, systems, or external events. The report identified response measures including inspections based on internal control standards and compliance monitoring systems, support for operational department improvements, and digital operational environment management through the ICT risk framework. The 2026 report specified ICT risk management system introduction as a key achievement, contrasting with the 2025 report's focus on enterprise-wide risk management principles and proactive response strategies.
MTS Login Failures and Margin Processing Errors Affect Customers
Last month, Kiwoom Securities' MTS platform 'Youngwoongmun S#' experienced login errors that prevented some customers from accessing the service. The company stated that errors occurred on some access servers, with service normalized before the domestic regular market opening, though customers attempting to use U.S. stock aftermarket trading faced inconvenience. One day before the sustainability report release, margin deposits made by some customers to prevent forced liquidations failed to reflect in the system on time, resulting in the disposal of held stocks. Kiwoom Securities stated that temporary processing delays caused deposit amounts to not reflect in some accounts, and the company notified affected customers and is proceeding with compensation.
Financial Authorities Cite Electronic Transaction Safety Violations
The 2026 sustainability report listed violations related to derivative product accounting treatment and electronic financial transaction safety obligations as major regulatory sanction types from the previous year. Recurrence prevention measures included securing electronic financial transaction safety and strengthening management and supervision. This differed from the previous year's report, which presented securities registration statement submission and disclosure obligation violations as primary violation types. The Korea Financial Investment Association stated that securities firms with high dependence on digital platforms must include not only system failure prevention but also post-incident recovery and customer damage relief within operational risk management scope.
Customer Account Growth Raises Operational Risk Exposure
Kiwoom Securities' customer accounts increased by 1.3 million from approximately 14.9 million in 2024 to approximately 16.2 million in 2025. Employee headcount grew from 994 to 1,197 during the same period. The company received comprehensive financial investment business designation and short-term financing business license from the Financial Services Commission in November and began issuing commercial paper. Commercial paper represents securities firms raising customer funds based on their own credit. A Korea Financial Investment Association official stated that as customer bases and funding businesses expand, whether management systems actually operate in the field will determine company credibility.
FAQ
What system failures did Kiwoom Securities experience recently?
Kiwoom Securities experienced MTS login errors last month that prevented some customers from accessing the 'Youngwoongmun S#' platform, followed by margin deposit processing delays that caused forced liquidations in some accounts one day before the 2026 sustainability report release.
When did Kiwoom Securities introduce its ICT risk management framework?
Kiwoom Securities introduced an ICT risk management system in 2024 to strengthen oversight of digital financial services, according to the company's 2026 sustainability report.
How many customer accounts does Kiwoom Securities manage?
Kiwoom Securities' customer accounts increased from approximately 14.9 million in 2024 to approximately 16.2 million in 2025, representing growth of 1.3 million accounts.
