Naver Financial Corp., which operates Naver Pay, was fined 23.6 million won Nov. 3 by South Korea's Financial Supervisory Service, The Chosun Ilbo reported, citing industry sources.

The disciplinary action, which included warnings to three executives, was taken due to Naver Financial's lax system security protocols, the publication noted.

Naver Financial failed to separate its intranet from the internet as required by firewall regulations under South Korean financial laws, according to the report.

The company also violated other data security rules, including a requirement to notify customers of any change in the terms of electronic financial transactions.

As of Nov. 15, US$1 was equivalent to 1,181.80 South Korean won.