Foresightuk South Korean Firms Lag in Cyber Insurance Adoption Amid Rising AI Threats
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- •Only 6.2% of new cyber insurance policies in South Korea are comprehensive.
- •Mandatory policies often provide insufficient coverage for actual damages.
- •Experts recommend raising legal minimum coverage amounts to match rising cyber threats.
South Korean companies are purchasing minimal cyber insurance despite increasing AI-driven hacking incidents. Only 6.2% of 2,486 new policies written in the first half of 2026 were comprehensive cyber insurance packages, with the majority being liability-only policies required by law. The Personal Information Protection Act mandates coverage for companies exceeding 1 billion won in revenue and holding personal data on over 10,000 individuals daily. However, many firms are opting for the minimum coverage necessary to comply with legal requirements, which often falls short of actual incident costs. For instance, Coupang's liability insurance covered only 1 billion won despite a breach that exposed data for 33.7 million accounts. The slow adoption rate of cyber insurance is concerning, with only a 2.1% increase in new policies from 2024 to 2025. Experts suggest that the rise of AI-powered cyberattacks necessitates a reevaluation of coverage requirements, possibly making cyber insurance mandatory like auto insurance.
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