Financial Supervisory Service(FSS) Governor Lee Chan-jin says he considers last week's data breach at Upbit, the largest South Korean cryptocurrency exchange, a serious incident that cannot be overlooked.

Lee said Monday, during his first news conference since taking office, that the under-discussion second phase of the Act on the Protection of Virtual Asset Users is expected to strengthen security.

He said the latest attack is an important opportunity to review potential issues in the second phase, including licensing requirements, operational guidelines, and virtual asset distribution disclosure.

Lee said the FSS is currently inspecting the Upbit breach and will consider whether to impose sanctions depending on its findings.

The FSS chief said that, based on recent data breaches, South Korea's investment in security appears low compared to other nations.

He vowed to boost system security and consumer protection by pushing revisions to related laws.