South Korea cyber threat surges amidst thin insurance cover

The next two hazards listed are interruption and fire plus explosion.

Cyber incidents are now the top risk for businesses in South Korea in 2026, jumping from sixth place last year, according to the latest Allianz Risk Barometer. 

From an insurance perspective, the findings highlight rising exposure to cyber losses and business interruption, at a time when the local cyber insurance market remains underdeveloped. 

The survey, compiled by Allianz Commercial, also shows business interruption and fire and explosion as the next biggest risks for Korean companies, ranking second and third.

Allianz Commercial said recent large-scale attacks, including data breaches at SK Telecom and Coupang that affected millions of customers, underline the growing need for coverage that can address data loss, ransomware, and operational shutdowns.

Globally, cyber incidents remain the number one risk for the fifth year in a row, cited by 42% of respondents, the highest level on record. 

In Asia Pacific, cyber, artificial intelligence, and business interruption are the top three risks. AI is the fastest-rising concern, driven by liability, regulatory, and reputational exposures as its use expands across core business operations.

Allianz Commercial South Korea said gaps remain in companies’ preparedness, response, and recovery from cyber incidents, and that cyber insurance can play a role in helping firms manage financial losses and reduce the impact of business interruption. 

Business interruption is a major concern in South Korea, where trade accounts for about 70% of GDP, making supply chains highly sensitive to geopolitical tensions and disruptions.

Fire and explosion also remain key insured risks, following several major incidents in 2025, including a fire at the national data centre and an explosion at the country’s largest oil refinery. 

Natural catastrophes and climate-related events, which are closely linked to property and business interruption claims, continue to rank amongst the top five risks.

The Allianz Risk Barometer is based on a survey of 3,338 risk management and insurance professionals in 97 countries and territories and is published by Allianz Commercial for the 15th year.