South Korea approves crisis resolution plans for five major financial groups to address digital bank run risks

According to Korean media EToday, the Korea Financial Services Commission announced that it has approved the 2026 Recovery and Resolution Plans for a total of 10 financial institutions, including the five major financial groups Shinhan, KB, Hana, Woori, and Nonghyup, along with their main banks, and has formally incorporated cyber attacks and "digital bank run" risks into the crisis management system for large financial institutions. The Korea Financial Services Commission added that as the scale of online financial transactions expands, funds may flow out rapidly within a short period. It will further improve digital bank run monitoring indicators to identify liquidity risks earlier. At the same time, it requires financial institutions to strengthen cyber security incident response mechanisms and consider scenarios in crisis contingency plans where multiple institutions simultaneously sell off assets and compete for liquidity under market shocks.