from Hacker News

South Korea’s online security dead end

by dirkf on 1/3/23, 2:01 PM with 135 comments

  • by r2vcap on 1/3/23, 10:20 PM

    Disclaimer. I am Korean and currently live in Korea. Online banking in Korea is very poor, so even though I code on Linux and macOS, I use Windows for internet banking.

    As in many other countries, banking in Korea is a state-regulated industry. However, Korea's regulatory system rule downs to the smallest detail.

    For example, in the Digital Signature Act(전자서명법), a content that allows only digital certificates in the form of files called authorized certificates(공인인증서) to be used for certification was added in 1999. (The contents were revised only in 2020.) As a result, most banking was accessible only using IE and Active-X. Now that Active-X cannot be used, various software is installed using separate installation files.

    Korea's financial regulators are strict, but Korean politicians and media are paternalistic, so if there's a problem with finance, most of them try to side with financial consumers. For example, the issue of password leakage due to a keylogger installed on a user's PC is considered to be a bank problem, not a user problem. For this reason, banking websites require all kinds of security software, such as keylogger checking programs and firewalls. (This problem is gradually being mitigated.)

    The problem with Korean security software is that the buyer of the security software (in this case, the bank) only requires that it meet the requirements of laws and regulatory authorities, so there is little room for improvement. Security software can be delivered only after CC certification (CC 인증) issued by the National Intelligence Service(국가정보원). By the way, the NIS is interested in which encryption algorithm is used (whether Korean algorithms such as SEED, ARIA, LEA, etc.), but it is not interested in whether Visual Studio Runtime is 2008 or 2019.

    Also, financial institutions do not take cybersecurity issues seriously. For example, when I was in the security industry, a financial company asked for security software for ATMs running Windows XP SP2. Even at that time, Windows XP was EOL, and our security software was only supporting Windows XP SP3 or later. Significantly, the company suffered a cyber attack a few years ago that paralyzed its entire financial services for several days.

    Most of the things I mentioned here refer to Korean-language materials, so giving references is somewhat limited.

  • by bob1029 on 1/3/23, 7:38 PM

    > This prompted South Korea to develop their own cryptographic solutions.

    I've had an opportunity to interact directly with Korean security culture in my time working for Samsung.

    I am sure there exists more secure examples out there, but I saw some extremely bad practices like trivially-reversible password shuffling used throughout the entire org. Anyone with access to a certain manufacturing database and knowledge of a particular stored procedure could immediately reverse all passwords and typically use them to go sideways into other engineering/facility systems.

    They always seemed substantially more interested in the theatrical aspects of security than focusing on any first principles. Lots of time was spent talking about reactionary crap like a fleet of hardware ARP sniffers installed throughout the network. Not a lot of time was spent talking about PBKDFs, system boundaries and determinism.

  • by gkanai on 1/4/23, 1:07 AM

    I was working at Mozilla in 2007 when I first brought this issue to the wider (i.e. beyond S. Korea) Internet. My post from then was widely covered by Slashdot and Boing Boing and other tech sites. S. Korea clearly doesn't care to 'fix' this because they've had more than enough time to do so.

    https://archive.is/ermII

    CNet back in 2007:

    https://www.cnet.com/tech/tech-industry/about-south-koreas-d...

    https://it.slashdot.org/story/07/01/26/1455224/why-south-kor...

  • by varenc on 1/4/23, 1:10 AM

    I poked around the install page for Citibank's required software and it's pretty fascinating: https://www.citibank.co.kr/CusSecnCnts0100.act?P_name=ASTx

    Some quick observations:

    - That page intentionally disables right-click! Just by putting `oncontextmenu="return false"` on the <body> tag. This gives me flashbacks to the late 90s when this technique was used to make it harder for users to copy images or inspect HTML source. Browsers all have built in developer tools so pretty silly seeing it now.

    - The JS included on that page is a mix of heavily obfuscated code[0] and completely unminified code with all the internal comments left in[1].

    - I was impressed that the required software seems to support Fedora and Ubuntu/Debian as well as macOS and Windows.

    - One of the installations is checked by making a JSON-P call (another old tech flashback!) to `https://lx.astxsvc.com:55921/ASTX2/hello?...`. This works because lx.astxsvc.com resolves to 127.0.0.1 so you're just hitting your localhost. Presumably the installed software checks the referer header to ensure only citibank is making these requests.

    [0] https://www.citibank.co.kr/aB-IFIZu8Pd7Zd1yjboonwGx/uYfEz6Dp...

    [1] https://www.citibank.co.kr/3rdParty/wizvera/veraport/install...

  • by gred on 1/3/23, 8:00 PM

    Very interesting read. I'm looking forward to the details in the followups (1/9, 1/23, 3/6). However, I'm surprised that there are no KR banks who build their reputation on their technical acuity and who have eliminated (or avoided) reliance on these types of applications. The markets I'm familiar with tend to have a few banks who have a reputation for good websites, good apps, etc. Or perhaps that bit of context was omitted, and these types of banks do exist in KR?

    Note for the author: small typo at "requires outmost care".

  • by second_brekkie on 1/3/23, 10:43 PM

    I live in Korea. In my experience pretty much everyone I know uses banking apps which you can do everything through, not online banking through a browser.

    You would hope that these would be somewhat more secure as this may have required a 're-write' as the article suggested.

    Though even with mobile apps you sometimes have to install some 3rd party 'anti-virus' software that probably amounts to spyware. But hey you can either lump it or leave it.

    They do at least try to make you feel like it's secure. To set up mobile banking you need at least 3 different passwords and need to perform 2fa 3 times as well.

    They have 'front end' security too, such as each time you enter a pass code the keyboard is in a different arrangement.

  • by badrabbit on 1/3/23, 11:48 PM

    For threat actors that target Korean users their favorite software to exploit for initial access is HWP (Hangul Word Processor). It's MS Word for Korean users. If you are being sent official docs of any kind, chances are it is a .hwp file that needs the program. Banking and internet access affects consumers but HWP is used by more interesting espionage/sabotage targets.

    https://www.fireeye.com/content/dam/fireeye-www/global/en/bl...

    I just looked up CVEs for it. I only see 2 in 2017. This is not a good thing, a complex word processor, even if it was rewritten in a memory safe language would have at least some low level non-memory vulns in 6 years!

  • by physicles on 1/3/23, 8:33 PM

    This mirrors the situation in China, likely for similar reasons.

    To this day, I can only do online banking with Internet Explorer 11. When logging in, of course the password field doesn't permit pasting. I have a couple ActiveX controls and certs installed, but I've forgotten which ones so I'll just have to keep that old laptop around. The one bright spot is that large transactions do require a USB dongle.

    At least one other website I've used (perhaps Alipay?) required you to install a browser plugin simply to be able to "securely" enter your PIN.

    Rewinding back to 2014, the brand new government website for buying train tickets[0] didn't have an SSL cert signed by any of the trusted authorities. If you wanted to buy tickets securely, you needed to download a zip file (over http) that contained 1) a self-signed root cert, and 2) a Microsoft Word document explaining how to add this to your OS's trusted root cert store and how this is totally legit and secure.

    [0] https://www.techinasia.com/chinas-official-train-ticket-site...

  • by nibbleshifter on 1/4/23, 12:15 AM

    10 years ago for work we assessed a similar client side software solution (a "secure browsing" pile of ActiveX and C++) for protecting banking sites users.

    Absolute steaming garbage.

    Its "anti keylogging" functionality could be bypassed trivially, as could its various screen hijacking tricks designed to defeat some methods used by the banking trojans that were common at the time.

    I see that snake oil industry lives on in Korea :/

    Very excited to see the results of OP's work (the disclosures).

  • by Roark66 on 1/3/23, 10:23 PM

    Oh boy...

    Once I saw this: >This starts with a simple fact: some of these applications are written in the C programming language, not even C++.

    I had to stop reading and come here to see if anyone else got annoyed by it. Seriously? "not even c++" are we still in 1990s?

  • by joshuaissac on 1/4/23, 12:47 AM

    Large banks in the UK used to promote an application called Trusteer Rapport that secured the connection between the bank's server and the user's computer. It was not mandatory like the Korean apps, just strongly suggested. I can see that some banks still offer it.
  • by prottog on 1/3/23, 8:47 PM

    This always bothered the hell out of me when interacting with Korean websites, especially online banking. I believe in addition to the factors that the article listed, there are several laws in place that mandate this chicanery, at least for banking.
  • by rgmerk on 1/4/23, 12:39 AM

    This smells terrible, I agree, but the proof of the pudding is in the eating.

    Are there any stats comparing levels of banking-related cybercrime in South Korea with other jurisdictions?

  • by snvzz on 1/10/23, 2:08 AM

    It is interesting to see a proprietary, very poor and insecure imitation of Nitpicker's xray mode[0].

    Note this is written by Norman Feske, who later went on to develop Genode[1], and continues to be its main developer today.

    0. http://demo.tudos.org/nitpicker_tutorial.html

    1. https://www.genode.org/

  • by smsm42 on 1/4/23, 6:11 AM

    > Nowadays, a typical Korean banking website will require five security applications to be installed before you are allowed to log in

    Note to self: never move to Korea. Or at least never use Korean bank (can you survive on cash and Bitcoin?)

  • by kyaru on 1/4/23, 8:02 AM

    Korea will not change unless it is fatally affected. Someone needs to shake it off.
  • by intoxicat3d on 1/4/23, 4:12 AM

    you know what, it has been dead end from the beginning when govern has tried to regulate what to use for security lol...
  • by black7375 on 1/3/23, 7:35 PM

    One of the reasons for maintaining is to transfer consumers to security responsibility.
  • by richbell on 1/3/23, 10:10 PM

    This reminds me of krebsonsecurity's experience attempting to contact the FSB.

    https://krebsonsecurity.com/2021/06/adventures-in-contacting...

    A lot of countries seemingly did not have access to American encryption technologies or did not trust them — arguably for good reasons[0] — which has lead to this hodge-podge of homegrown security.

    [0] https://www.washingtonpost.com/graphics/2020/world/national-...

  • by michael1999 on 1/3/23, 10:12 PM

    This is the world the Clipper-chip minds offer us. I'm happy we dodged that bullet.
  • by filoleg on 1/3/23, 7:04 PM

    Overall an interesting post, thanks for sharing.

    Nitpick for OP (@palant): on mobile Safari (haven't checked any desktop browsers), the images embedded into the post appear stretched out vertically (i.e., too "slim"). It is still technically readable, but very noticeable and jarring. This only applies to the images when embedded, opening direct image URLs in a dedicated browser tab renders them properly without any stretching. I suggest checking CSS, but that's just my first guess and could be entirely wrong.

    I think just keeping the same horizontal size of images, but reducing the vertical size, would make it much more aesthetically pleasing + readable.

  • by nokya on 1/3/23, 6:57 PM

    I see two candidate alternatives to your "Getting out of the dead end":

    1. Give SK a few months/years until it realizes it is losing billions revenue nationally due to hacking by foreign entities and it will naturally invest in its application security landscape.

    2. Reconsider your position on SK's current situation by factoring actual risk in the equation (likelihood of threat, in particular). What you seem to have discovered are client-side vulnerabilities that would require direct network access to the client machines to be exploited (i.e., no firewall, no NAT, no etc.). First, these limitations greatly reduce the attack surface and second, they may actually cost the attacker more to exploit than simply sending a well-crafted message with an attachment to click on.

    I would be much more convinced by your conclusions if you added elements that would support the hypothesis that the situation is similar (or worse) server-side.

    (edit: removed ugly formatting)