
SK Telecom stores overwhelmed as customers rush to replace USIM cards over security fears
What was meant to reassure customers after a major security scare quickly turned into long lines, delays and frustration, as SK Telecom's free USIM card replacement program struggled to meet overwhelming demand on its first day.
Earlier this month, South Korea's largest mobile carrier disclosed that it had discovered malware inside a key internal system, the Home Subscriber Server — the database that manages mobile user identities and network authentication.
The discovery raised concerns that sensitive information stored on customers' physical USIM cards — including identifiers needed to verify a user's phone on the network — may have been exposed.
To address security concerns, the company promised free physical USIM card replacements to all affected customers — over 25 million people in total.
It also urged customers to enroll in its "USIM Protection Service," a security feature that blocks network access if a cloned USIM card is inserted into an unauthorized device by verifying the phone's IMEI number — a unique identifier assigned to each mobile device, like a digital fingerprint.
SK Telecom emphasized that enrolling in the service offers a level of safety comparable to replacing the card.
Long lines, empty hands
At SK Telecom's store near Sookmyung Women's University station in Yongsan-gu, Seoul, customers lined up early Monday morning, only to find that the stock of USIM cards had already been depleted.
The store had posted an online notice days earlier on Naver Map, warning that over 500 reservations had already been made.
Inside, two overwhelmed employees explained that early reservation holders could swap their USIM cards immediately, while walk-ins have to book new appointments — later this week if done in person, or next week if scheduled online through SK Telecom's website (care.tworld.co.kr).
"Even with endless stock, two of us can only replace about 100 cards a day," one staffer said.
For most waiting in line, security fears, not inconvenience, drove the urgency.
A woman in her 50s said she had booked her appointment "as soon as news of the breach broke."
Nearby, a man in his 60s, who had received SK Telecom's security alert via text, called the breach "very serious" and said he felt far safer physically replacing his USIM card than relying solely on the network-based protection service.
Others shared similar views.
A university student in his 20s said he "did not expect immediate financial theft" but felt "uncomfortable leaving compromised data unaddressed." A man in his 30s, who had learned about the breach only through news reports, said he "found the situation unsettling enough to warrant a prompt replacement."
The reservation website struggled under demand as well. By mid-morning, more than 97,000 customers were queued for reservations.
At major airports like Incheon, SK Telecom expanded roaming center staffing by 50 percent and pledged that even if customers missed replacement opportunities before departing, the company would be liable for any subsequent overseas fraud involving cloned USIM cards.
Currently, SK Telecom holds around one million USIM cards, with plans to secure five million more by late May. Given the scale, shortages are expected to persist for weeks.
Experts assurance amid anxiety
Amid these mounting anxieties from customers, cybersecurity professor Kim Seung-joo of Korea University told The Korea Herald that replacing the UICC smart card containing the USIM application resets the crucial IMSI and K values, neutralizing the impact of the leaked data.
"When you replace your USIM card, the identifiers are regenerated. You can rest assured after replacement," Kim said.
He confirmed that SK Telecom's USIM Protection Service also provides strong interim protection by blocking cloned cards from accessing the network. "Enroll in the service first if necessary, and replace the USIM card later when the rush subsides," he advised.
Kim also confirmed that leaked USIM card data alone cannot directly lead to bank account theft.
mjh@heraldcorp.com
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Korea Herald
a day ago
- Korea Herald
SK Telecom, Krafton debut open-source AI models for math, code
SK Telecom, Korea's largest wireless carrier in terms of subscribers, and gaming giant Krafton have unveiled three open-source language models optimized for inference tasks such as mathematics and code generation, the companies said on Monday. The newly released models are lightweight language models tailored to problem-solving and programming tasks. Developed through collaboration, the models boasting 7 billion parameters incorporate a proprietary learning technique crafted by Krafton to improve reasoning and accuracy. Parameters indicate a large language model's complexity. They can range from millions to trillions depending on the model's application. One of the models demonstrated performance improvement on the AIME 25, a prominent benchmark for mathematical reasoning. The companies say the models open new avenues for expanding artificial intelligence technologies in gaming, particularly in areas such as gameplay analysis and strategic decision-making. The two firms jointly developed the models; SK Telecom oversaw infrastructure and data validation while Krafton focused on training technique innovation. The partnership is seen as a successful demonstration of domain-specific AI capabilities, the firms said. The gaming giant developed a novel method called 'answer review learning,' which enhances model performance by identifying and learning from incorrect answers in training data. SK Telecom contributed by providing robust infrastructure and ensuring high model stability and data integrity. Looking ahead, Krafton plans to apply the advanced training method to game-specific AI technologies, enabling smarter decision-making and player behavior analysis. The company also aims to develop language models of various scales, contributing to Korea's pursuit of AI sovereignty and ecosystem independence. 'The latest collaboration laid the foundation for Korea's sovereign AI strategy by creating a high-performance language model based on the strengths of both companies,' said Kim Ji-won, head of SK Telecom's AI model lab. 'We will continue our close cooperation to secure leadership in AI technology.' The two companies are also participating in the government-led AI foundation model project, with SK Telecom leading the consortium and Krafton joining as a key partner.


Korea Herald
5 days ago
- Korea Herald
SK Telecom joins state-led project to advance Korean AI models
SK Telecom announced Thursday that it has joined the Ministry of Science and ICT's 'AI Foundation Model' project, furthering its strategy to build independent artificial intelligence optimized for the Korean language. Since 2018, SKT has focused on developing large language models tailored to Korean. It launched KoBERT, Korea's first deep-learning language model, in 2019, followed by KoGPT2 and KoBART, contributing to the advancement of Korea's AI ecosystem. These models have supported both customer-facing services and open-source collaboration. The company's proprietary A.X series, developed entirely from scratch, has been integrated into real-world services via its AI assistant platform 'A.' A.X 1 focused on emotional conversation, A.X 2 introduced knowledge-based responses, and A.X 3.0 improved reasoning speed and performance. These models have powered features like call summarization and AI agents. The latest version, A.X 4.0, enhances reasoning with external knowledge and employs continual pre-training, offering greater data security and improved Korean-language processing. It is already being used in SKT's commercial services, including enhanced call summaries. Notably, SKT also unveiled the A.X 3.1, with both standard (34 billion parameters) and lightweight (7 billion parameters) versions developed from scratch.


Korea Herald
20-07-2025
- Korea Herald
Korea ends phone subsidy law: Are cheaper smartphones coming?
Samsung's new foldables, Apple's upcoming iPhone 17 to test new free-market phone pricing South Korea is to officially repeal its decade-old handset subsidy law on Tuesday, opening the door to bigger discounts and potentially cheaper smartphones — just in time for the launch of Samsung Electronics' new Galaxy Z Flip7 and Fold7 later this month and Apple's iPhone 17 in the fall. Industry insiders say a 'subsidy war' is likely to break out, as mobile carriers rush to regain market share with aggressive pricing and subsidies. SK Telecom, in particular, is expected to take bold action after losing over 800,000 subscribers in a major April data breach. The repeal marks a major shift in the mobile phone market. Carriers and retailers will no longer be restricted by government-set subsidy limits, allowing for more flexible and competitive pricing. Phones could even be sold at 'zero-cost,' depending on the plan and promotions. To help consumers understand what the repeal means and how to make smart choices in the new free-market landscape, The Korea Herald answers key questions below. Q: What is the subsidy law and why is it repealed? The Mobile Device Distribution Improvement Act was passed in 2014 to make phone pricing more transparent and fair. It capped store discounts at 15 percent on top of official carrier subsidies and required carriers to publish fixed subsidy amounts. But over time, critics said it had the opposite effect — inflating smartphone prices, limiting consumer benefits and making the market harder to navigate. After years of complaints from consumers and industry players alike, the government decided to repeal the law to encourage more competition, bigger discounts and greater pricing flexibility. Q: What's changing now that the law is gone? Carriers no longer need to publicly post fixed subsidy amounts and retailers are no longer restricted to 15 percent discounts. That means devices could be sold with much higher discounts — even for free, depending on the plan. However, retailers must now clearly explain all subsidy conditions in their contracts. Q: Can I still see how much of a subsidy I'm getting? Yes, but only voluntarily. The major carriers — SK Telecom, KT and LG Uplus — have agreed with regulators to continue posting subsidy information online by rate plan, although it is no longer legally mandated. Q: Where do I find extra discounts from stores? Discounts will vary by store. Authorized dealers and independent shops may offer different incentives, so it pays to compare offers before signing a contract. Q: Can I combine the 25% discount with store deals? Yes. You can still choose the 25 percent discount for going contract-free and also get additional discounts from retailers, thanks to looser rules. Q: Do discounts depend on how I sign up? Yes. Retailers can now offer different discounts depending on whether you are switching carriers, starting a new plan or upgrading. That kind of 'discriminatory pricing' was previously restricted, but is now allowed. Q: Is there a limit on how much discount I can get? No. There's no longer a cap on discounts. The carrier, phone-maker and store can set subsidy amounts freely. In theory, this means that even the latest phones could be priced at zero, but only under specific plans or conditions. Q: What counts as unfair pricing now? While pricing can vary by plan and contract type, stores must offer equal subsidies to everyone under the same conditions — the same phone, plan and type of contract. The telecom regulator will monitor for violations. Q: Will phone-makers reveal more about incentives? Yes. Companies like Samsung and Apple must now report monthly data on incentives they give to carriers and retailers. This info will be submitted to the Ministry of Science and ICT and the Korea Communications Commission. Q: What should I check before signing a contract? Always review: Who is providing the subsidy (carrier or retailer) How it's being applied Any extra fees or plan requirements Retailers must disclose everything clearly and if they don't, they could face penalties. Q: Are my consumer rights still protected? Yes. Protections remain in place, including bans on: Discrimination based on age, region or disability Being pushed into expensive plans Misleading or false advertising Q: What about vulnerable groups like the elderly? The government says it will pay special attention to 'information-vulnerable' groups like seniors and teenagers, ensuring they are not excluded or misled in the new competitive environment. Q: How is the government keeping watch? A joint task force of regulators and telecom firms will meet at least twice a week to monitor the market and respond quickly to any signs of chaos or abuse. Q: Can I buy new phones cheaper now? Possibly soon. Industry insiders say a 'subsidy war' is inevitable, at least in the short term, as mobile carriers ramp up aggressive marketing and offer larger discounts to win over customers. SK Telecom, which lost over 800,000 subscribers after a major hacking incident in April and dropped below 40 percent market share, is widely expected to launch a bold pricing strategy to regain ground. The timing also adds fuel to the fire: Samsung's latest foldables, the Galaxy Z Flip7 and Fold7, hit the market on July 25, while Apple's iPhone 17 is expected later in the third quarter. These high-profile launches are seen as key moments that could set the tone for how the postsubsidy market unfolds — and whether Korean consumers will finally get their hands on premium smartphones at lower prices.