Technology drives retail today—powering e-commerce platforms, inventory systems, and payment gateways. With 62.6% of global e-commerce originating in the Asia Pacific region (1), this key market represents both a growth engine for retailers and an appealing target for cyberattacks.
For retailers, the question isn’t if a cyber incident will occur, but when. The consequences can be severe: halted operations, lost revenue, and damaged reputation. Recent cyberattacks on three retail businesses in Asia highlight the need to reassess cyber business interruption insurance.
Hong Kong convenience store chain: E-payment outage stalls transactions for more than a week
Circle K Hong Kong, which operates nearly 400 convenience stores in the city, was the victim of a cyberattack that disabled its electronic payment and customer loyalty program systems for more than a week in September. Although all the stores remained open, the chain faced customer complaints regarding its slow response and the expiration of loyalty points.
A strong cybersecurity strategy for retailers includes both an incident response plan and cyber insurance. The former focuses on detecting, responding to, and recovering from cyberattacks, whereas the latter provides financial protection and support for businesses against such incidents.
Japanese online stationery retailer: Ransomware disrupts e-commerce and logistics
Japanese office and household goods retailer Askul Corporation has suspended its e-commerce and logistics services for corporate clients since being hit by a ransomware attack on 19 October. It also affected retail companies Muji and Loft, as they have outsourced shipments from their online stores to Askul-affiliated logistics firms.
In late October, Askul could only conduct trial shipments of 37 items, including copy paper and toilet paper. It also confirmed that customer and supplier data had been leaked. A hacker group claimed that it obtained approximately 1.1 terabytes of customer data from Askul.
South Korea ticketing platform: Hit by two ransomware attacks in just two months
Yes24, South Korea’s leading ticketing platform with over 20 million registered users, was hit by a ransomware attack on 9 June that paralyzed its website, mobile app, and booking systems for over four days.
Despite pledging to introduce stronger cybersecurity measures after the incident, Yes24 was forced to shut down its website and mobile app for seven hours on 11 August due to another ransomware attack. The two outages caused major disruptions across South Korea’s entertainment industry, including cancellations and postponements of K-pop events and concerts, and indicated significant financial outlay though exact totals were not disclosed.
Even after recovering from a ransomware attack, companies may face sustained financial setbacks due to a drop in consumer confidence. To address this risk, cyber business interruption policies often include coverage for reputational damage as well.
In context, the average cost of a data breach in South Korea was USD 2.84 million, based on IBM findings (2). Cyber insurance can help businesses mitigate financial losses from data breaches and respond to such threats.
Why Cyber Business Interruption Insurance Matters
Cybersecurity measures and incident response plans are essential, but they don’t eliminate financial exposure. Cyber insurance bridges this gap by covering:
Lost income from operational downtime
Data recovery and forensic investigation costs
Legal and regulatory expenses
Crisis communication and reputation management
According to the latest report from a British cybersecurity firm, the average recovery cost from a ransomware attack in 2025, excluding any ransom payment, was USD 1.65 million (3). Depending on the complexity, resolving a business interruption claim may take months, making early engagement with brokers and insurers critical.
What would happen if your business operations went offline for a week? Don’t wait to find out. Cyber business interruption insurance is no longer optional; it’s a strategic safeguard for continuity and resilience.
For more information, please visit the Cyber and Technology page (opens a new window) or contact a member of our team.
Footnote:
(1) NIQ. 10 April 2025. 30 by 30: The future of e-commerce in Asia Pacific. https://nielseniq.com/global/en/insights/infographic/2025/30-by-30-the-future-of-ecommerce-in-asia-pacific/ (opens a new window).
(2) IBM. (2025). Cost of a Data Breach Report 2025. https://www.ibm.com/reports/data-breach (opens a new window).
(3) Sophos. 19 August 2025. The State of Ransomware in Retail 2025. https://news.sophos.com/en-us/2025/08/19/the-state-of-ransomware-in-retail-2025/ (opens a new window)
