Let’s go to Kathmandu. Cyber incidents are now emerging as the top risk for businesses in South Korea in 2026. This is up from the sixth position last year.
From an insurance perspective, these results reflect the increased risk of cyber losses and business disruption, according to the latest Allianz Risk Barometer report. “That’s when the local cyber insurance market is weak,” the report said.
The survey by Allianz Commercial also ranked trade disruptions, fires and explosions as the next biggest risks for Korean companies. Allianz Commercial said: “Recent major attacks, including data breaches on SK Telecom and Coupang, affected millions of customers. This highlights the growing need for coverage that can address data loss, ransomware and outages of operations.
Globally, cyber incidents are the number one risk for the fifth year in a row. This was cited by 42% of respondents. Which is the highest ever.
Cyber, artificial intelligence (AI) and trade disruption are the top three risks in the Asia Pacific region. As the use of AI expands into core business operations, it has become one of the fastest-growing concerns due to liability, regulatory, and reputational risks.
Allianz Commercial South Korea said there were gaps in companies’ preparedness, response and recovery from cyber incidents. Cyber insurance can help firms manage financial losses and reduce the impact of business disruptions.
Trade barriers are a major concern in South Korea. Where trade accounts for about 70% of GDP. This makes supply chains highly vulnerable to geopolitical tensions and disruptions.
Fires and explosions remain insured risks after several major events, including a fire at a national data center in 2025 and an explosion at the nation’s largest oil refinery. Natural disasters and climate-related events are closely linked to property and business disruption claims. These are among the top 5 risks.
The Allianz Risk Barometer is based on a survey of 3,338 risk management and insurance professionals across 97 countries and territories.
