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Korea Herald
07-07-2025
- Business
- Korea Herald
SKT loses 800,000 subscribers amid fallout from hacking scandal
With Samsung's new phones debuting this week, telco rivalry heats up as SKT fights to retain users SK Telecom, South Korea's largest telecommunications firm by market share, is facing mounting fallout from a massive cyberattack, with subscriber churn accelerating despite the company's compensation measures, such as allowing customers to cancel their contracts early without penalty. While the company may retain its No. 1 position for now, its market dominance is increasingly under threat, with over 800,000 subscribers having already left as of the end of last month. As rival carriers ramp up efforts to lure dissatisfied customers, attention is focused on how SKT will contain the damage and defend its market share. Just a day after SKT announced its penalty waiver for early contract termination and unveiled a compensation plan on Friday, nearly 4,000 subscribers switched to rival carriers. On Saturday alone, SKT lost 3,865 users, while KT and LG Uplus gained 1,952 and 1,913 new subscribers, respectively. The government concluded on Friday that SKT had been the target of hacking attacks since 2021, and that negligence on its part allowed the damage to escalate — ultimately leading to the exposure of nearly 10 gigabytes of sensitive subscriber data. Amid concerns about significant financial losses, SKT ultimately decided to comply with the government's order to waive termination fees, prioritizing the restoration of long-term customer trust over short-term revenue, according to SKT CEO Ryu Young-sang. At a parliamentary hearing in May, the CEO warned that up to 5 million customers could leave if the company waived its termination fees, potentially resulting in more than 7 trillion won ($5.1 billion) in revenue losses over the next three years — assuming an average penalty of 100,000 won per person. Customers who canceled their contracts after the April 19 hacking incident, or who do so by July 14, will not be required to pay termination fees. In addition to the penalty waiver, the company has also announced compensation measures, including a 50 percent discount on August bills and 50 gigabytes of free monthly data through the end of the year. 'We are closely watching the situation, as there will likely be a significant number of subscribers who choose to end their SKT contracts and switch carriers without penalty by the 14th,' said an industry official. Reflecting the impact of these measures, SKT revised its 2024 consolidated sales forecast downward from 17.8 trillion won to 17 trillion won, citing losses from bill discounts and anticipated revenue hits from the penalty waivers. With SKT's waiver policy easing contract exits and rival carriers stepping up their marketing efforts, telecom competition is expected to peak in the coming weeks. Samsung Electronics is also preparing to launch its next-generation foldable smartphones — the Galaxy Z Flip 7 and Z Fold 7 — this week, while the upcoming repeal of a law that caps smartphone subsidies is expected to add further fuel to the competitive fire. Meanwhile, some franchise stores of rival mobile carriers have come under fire for aggressive and unethical marketing tactics. As KT and LG Uplus intensify their campaigns to attract SKT users, certain retail outlets have reportedly offered illegal subsidies and instructed employees to use fear-based sales pitches. One such script targeting hesitant customers reportedly read: 'If you stay with SKT, your child could suffer from similar hacking later, and your phone number leak could put your child at risk too.' While the government has confirmed there has been no secondary damage from the hacking incident, these misleading tactics are fueling consumer fear in a bid to boost subscriber counts.
Korea Herald
04-07-2025
- Business
- Korea Herald
SKT unveils W1tr post-hack plan after government probe
Plan includes waived fees, extra data and Korea's largest telco cyber spend SK Telecom on Friday pledged a sweeping 1 trillion won ($720 million) compensation and cybersecurity initiative, including penalty-free contract cancellations, after a government probe concluded the carrier was negligent in a hacking attack that exposed nearly 10 gigabytes of sensitive subscriber data. 'I offer my deepest and sincerest apologies. I stand here today with profound remorse and reflection,' SKT CEO Ryu Young-sang said, bowing during an emergency press briefing after the government's disclosure of its findings. 'We take the results of the government's joint public-private investigation very seriously and will swiftly implement all corrective actions and additional measures to prevent any recurrence.' Earlier, the Ministry of Science and ICT said SK Telecom failed to adequately protect its systems against an intrusion in April and ordered the company to permit contract cancellations without penalties and reinforce security measures. In response, SKT announced a compensation initiative, which includes 500 billion won worth of benefits for its about 24 million SKT subscribers, and a 700 billion won investment in cyber security over the next five years — the largest such commitment in Korea's telecom sector. The company also accepted the government's order to remove early termination penalties, a move expected to result in significant financial losses. Customers who canceled their contracts after the hacking, or who do so by July 14, will not be required to pay termination fees. In addition, the telecom giant will also automatically apply a 50 percent discount on telecom bills and provide 50GB of additional data per month to all subscribers, including those using budget services on SKT's network, from August to through the end of the year. Noting how it has been offering free USIM replacements and protection services, the company said it will also provide one year of free access to Zimperium's advanced mobile security solution, used by over 2,500 organizations globally. In its five-year security innovation plan, the company said it aims to double its security workforce, contribute 10 billion won to a security ecosystem fund and strengthen partnerships with universities and startups. The company will also elevate the chief information security officer to report directly to the CEO and recruit cybersecurity experts to its board. Before announcing the compensation plan, SKT lowered its full-year revenue forecast to 17 trillion won from 17.8 trillion won and revised its operating profit outlook from an expected gain to a potential loss on a year-on-year basis. 'This forecast reflects the impact of implementing the customer appreciation program worth 500 billion won and broader market conditions,' SKT said.
The Star
04-07-2025
- Business
- The Star
South Korea penalises 'negligent' SK Telecom over major data leak
FILE PHOTO: The logo of SK Telecom is pictured at the GSMA's 2023 Mobile World Congress (MWC) in Barcelona, Spain February 28, 2023. REUTERS/Nacho Doce/File photo SEOUL (Reuters) -South Korean authorities ordered on Friday SK Telecom to strengthen data security and imposed a fine after the country's biggest mobile carrier was hit by a cyberattack that caused the leak of 26.96 million pieces of user data. The measures come after SK Telecom in April disclosed that it had suffered a major leak of customer data caused by a malware attack. Shares in SK Telecom closed down 5.6% on Friday. "SK Telecom failed to fulfil its duty of care to protect USIM data and did not comply with relevant regulations," the Ministry of Science and ICT said in a statement. "Therefore, the company is deemed negligent in this incident," the ministry said as it announced the results of the government's probe into the data leak. USIM refers to universal subscriber identity module cards used in smart phones. The ministry said it would impose a fine of up to 30 million won ($21,970), and SK Telecom must enforce security measures at least once a quarter, have its chief executive officer directly oversee data governance, and increase personnel and investment in data security. Following the government's announcement, SK Telecom unveiled a variety of measures to compensate its affected customers and beef up information protection. The company will invest about 700 billion won ($513.38 million) over five years for data protection and give a discount of 50% for August subscription fees for all of its 24 million customers, it said in a statement. "All SK Telecom executives and employees take the results of the public-private joint investigation very seriously and once again sincerely apologise to customers and society for the cyber breach incident," SK Telecom CEO Ryu Young-sang said. SK Telecom also slashed its forecast for 2025 revenue by 800 billion won to reflect the cost of about 500 billion won for the customer benefit package in relation to the cyber breach incident, the company said in a regulatory filing. Science Minister Yoo Sang-im called the case "a wake-up call for information protection" for the overall network infrastructure. SK Group Chairman Chey Tae-won apologised last month for the data leak and SK Telecom said it would take full responsibility for any harm caused as a result of the breach, which has caused alarm among its 23 million users over the possible theft of personal and financial information. The mobile carrier said it would start offering USIM replacements to all 23 million users for free at more than 2,600 retail stores nationwide following the cybersecurity breach. About 9.39 million users have replaced their USIMs as of late June, according to SK Telecom. ($1 = 1,363.5200 won) (Reporting by Heekyong Yang, Joyce Lee and Ju-min Park Editing by Ed Davies)
Time of India
04-07-2025
- Business
- Time of India
South Korea penalises 'negligent' SK Telecom over major data leak
Academy Empower your mind, elevate your skills South Korean authorities ordered on Friday SK Telecom to strengthen data security and imposed a fine after the country's biggest mobile carrier was hit by a cyberattack that caused the leak of 26.96 million pieces of user measures come after SK Telecom in April disclosed that it had suffered a major leak of customer data caused by a malware attack. Shares in SK Telecom closed down 5.6% on Friday."SK Telecom failed to fulfil its duty of care to protect USIM data and did not comply with relevant regulations," the Ministry of Science and ICT said in a statement."Therefore, the company is deemed negligent in this incident," the ministry said as it announced the results of the government's probe into the data refers to universal subscriber identity module cards used in smart ministry said it would impose a fine of up to 30 million won ($21,970), and SK Telecom must enforce security measures at least once a quarter, have its chief executive officer directly oversee data governance, and increase personnel and investment in data security. Following the government's announcement, SK Telecom unveiled a variety of measures to compensate its affected customers and beef up information company will invest about 700 billion won ($513.38 million) over five years for data protection and give a discount of 50% for August subscription fees for all of its 24 million customers, it said in a statement."All SK Telecom executives and employees take the results of the public-private joint investigation very seriously and once again sincerely apologise to customers and society for the cyber breach incident," SK Telecom CEO Ryu Young-sang Telecom also slashed its forecast for 2025 revenue by 800 billion won to reflect the cost of about 500 billion won for the customer benefit package in relation to the cyber breach incident, the company said in a regulatory Minister Yoo Sang-im called the case "a wake-up call for information protection" for the overall network Group Chairman Chey Tae-won apologised last month for the data leak and SK Telecom said it would take full responsibility for any harm caused as a result of the breach, which has caused alarm among its 23 million users over the possible theft of personal and financial mobile carrier said it would start offering USIM replacements to all 23 million users for free at more than 2,600 retail stores nationwide following the cybersecurity 9.39 million users have replaced their USIMs as of late June, according to SK Telecom.
Economic Times
04-07-2025
- Business
- Economic Times
South Korea penalises 'negligent' SK Telecom over major data leak
The ministry said it would impose a fine of up to 30 million won ($21,970), and SK Telecom must enforce security measures at least once a quarter, have its chief executive officer directly oversee data governance, and increase personnel and investment in data security. Following the government's announcement, SK Telecom unveiled a variety of measures to compensate its affected customers and beef up information protection. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads South Korean authorities ordered on Friday SK Telecom to strengthen data security and imposed a fine after the country's biggest mobile carrier was hit by a cyberattack that caused the leak of 26.96 million pieces of user measures come after SK Telecom in April disclosed that it had suffered a major leak of customer data caused by a malware attack. Shares in SK Telecom closed down 5.6% on Friday."SK Telecom failed to fulfil its duty of care to protect USIM data and did not comply with relevant regulations," the Ministry of Science and ICT said in a statement."Therefore, the company is deemed negligent in this incident," the ministry said as it announced the results of the government's probe into the data refers to universal subscriber identity module cards used in smart ministry said it would impose a fine of up to 30 million won ($21,970), and SK Telecom must enforce security measures at least once a quarter, have its chief executive officer directly oversee data governance, and increase personnel and investment in data security. Following the government's announcement, SK Telecom unveiled a variety of measures to compensate its affected customers and beef up information company will invest about 700 billion won ($513.38 million) over five years for data protection and give a discount of 50% for August subscription fees for all of its 24 million customers, it said in a statement."All SK Telecom executives and employees take the results of the public-private joint investigation very seriously and once again sincerely apologise to customers and society for the cyber breach incident," SK Telecom CEO Ryu Young-sang Telecom also slashed its forecast for 2025 revenue by 800 billion won to reflect the cost of about 500 billion won for the customer benefit package in relation to the cyber breach incident, the company said in a regulatory Minister Yoo Sang-im called the case "a wake-up call for information protection" for the overall network Group Chairman Chey Tae-won apologised last month for the data leak and SK Telecom said it would take full responsibility for any harm caused as a result of the breach, which has caused alarm among its 23 million users over the possible theft of personal and financial mobile carrier said it would start offering USIM replacements to all 23 million users for free at more than 2,600 retail stores nationwide following the cybersecurity 9.39 million users have replaced their USIMs as of late June, according to SK Telecom.
