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South Korean banks and media systems paralysed amid state-sponsored hacking fears South Korean banks and media systems paralysed amid state-sponsored hacking fears
(about 1 hour later)
South Korea is investigating whether a North Korean cyber-attack is responsible for the paralysis of computer systems at major media and banks, the state news agency has reported. South Korea is investigating a suspected cyber-attack that paralysed systems at major media and banks on Wednesday, amid speculation that the North could be responsible. 
Yonhap said the military had upgraded its information surveillance status after the computer networks of three broadcasters – KBS, MBC and YTN – and two banks, the Shinhan and Nonghyup, froze at around 2pm. The computer networks of three broadcasters - KBS, MBC and YTN - and two banks, Shinhan and Nonghyup, froze at around 2pm local time. Shinhan said its ATMs, payment terminals and mobile banking in the South were affected. TV broadcasts were not affected.
South Korean internet service provider LG UPlus said it believed its network had been hacked. YTN said that Seoul's internet security agency had yet to find any evidence of external attacks. Warnings reportedly appeared on some computer screens from a previously unknown group calling itself the "WhoisTeam", showing skulls and a message stating it was only the beginning of "our movement".
The development comes amid high tensions on the Korean peninsula and days after the North accused the United States of staging cyber-attacks against it following a two-day internet outage that disrupted its main news services and websites. Access to the internet is restricted to a tiny proportion of the North's population, perhaps a few thousand people. A presidential aide said it had not been determined whether North Korea was involved, state news agency Yonhap reported.
Daniel Pinkston, the north-east Asia project director for the International Crisis Group, said the timing was interesting given Pyongyang's accusations of US cyber-attacks and said that there were ongoing concerns about North Korea developing its hacking capabilities. The South's communications watchdog raised its alert level on cyber-attacks to level three on a five-tier scale, tripling the number of staff monitoring the situation.
Pyongyang reacted furiously after the United Nations security council tightened sanctions because of its latest nuclear test. A police official told Reuters: "We sent down teams to all affected sites. We are now assessing the situation. This incident is pretty massive and will take a few days to collect evidence."
Analysts say that while no one wants war the risks of misunderstanding or misjudgement rise as frictions increase – particularly given the relative youth and inexperience of the North's leader, Kim Jong-un, and the fact that a new president, Park Geun-hye, has just taken office in the South. Defence minister Kim Kwan-jin covened an emergency security meeting and raised the military's cyberattack readiness level from three to four on the five-tier system, Yonhap reported.
Countries around the world are growing increasingly concerned about the risks of cyber-attacks. The development comes amid high tensions on the Korean peninsula. Pyongyang reacted furiously after the United Nations Security Council tightened sanctions earlier this month because of its latest nuclear test.
Last week it accused the United States and South Korea of staging cyber attacks against it following a two day internet outage that disrupted its main news services and websites. Access to the internet is restricted to a tiny proportion of the North's population, perhaps a few thousand.
A spokesman for Bangkok-based Loxley Pacific, the broadband internet provider for North Korea, told the Associated Press on Friday that the origin of that attack was unclear. The South denied involvement and the US military declined to comment.
Daniel Pinkston, north east Asia project director for the International Crisis Group, said the timing of today's problems was interesting given Pyongyang's accusations of US cyber-attacks, and said that there were ongoing concerns about North Korea developing its hacking capabilities.
Last year the top US commander in the region told a Congressional hearing: "North Korea employs sophisticated computer hackers trained to launch cyber infiltration and cyber attacks."
James Thurman, the commander of US Forces Korea, suggested they were "increasingly employed against a variety of targets including military, governmental, educational and commercial institutions."
Experts believe the South has been previously targeted by hackers from the North. Anti-virus firm McAfee said it believed a 10-day denial of service attack in 2011 originated from the North and suggested it was an attempt to test the South's computer defences in preparation for potential future conflicts. Another attack on a newspaper last year was also blamed on North Korean hackers.
"It's got to be a hacking attack," Lim Jong-in, dean of Korea University's Graduate School of Information Security, told the Associated Press. "Such simultaneous shutdowns cannot be caused by technical glitches."
He warned that it would take months to determine the source of the attacks.