South Korea’s Financial Services Commission (FSC) conducted a disaster response exercise at the Korea Exchange to test financial service continuity during simultaneous physical infrastructure damage and a cyberattack. The scenario involved a large sinkhole damaging power and communications facilities, an equipment fire reducing data center cooling capacity, and a distributed denial of service attack compounding the disruption. The exercise brought together 11 organizations, including financial infrastructure operators, supervisors and emergency services. It examined coordination between agencies and the process of switching operations to the disaster recovery center in Busan, restoring securities trading and recovering the Seoul data center. These operational tests align with the FSC’s September 2025 call for financial firms to maintain updated business continuity plans and conduct recovery drills, although the release did not identify specific shortcomings or report whether recovery targets were met. The FSC plans to incorporate the exercise findings into its crisis management manual for disruptions to national critical infrastructure. It will also work with participating institutions to improve the manual’s practical applicability and strengthen capabilities for assessing risks to key systems and facilities.
South Korea’s Financial Services Commission tests disaster recovery under combined sinkhole and cyberattack scenario
South Korea’s Financial Services Commission conducted an exercise testing financial service continuity during a simulated sinkhole, data center fire and cyberattack. The drill examined switching operations to a disaster recovery center in Busan and restoring securities trading and the Seoul data center. Findings will inform updates to the critical infrastructure crisis management manual and improvements to risk assessment capabilities.