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SK Telecom has appealed a record fine that was imposed as a result of a large data breach and plans to improve cyber security and compensate consumers.
SK Telecom (SKT), South Korea's largest mobile operator, has announced that it would appeal a record-setting fine after a huge consumer data breach. The previous year, the company announced it suffered a cyberattack in 2022, which revealed the data of 26.9 million of its consumers, close to its entire subscriber base. After an investigation, the PIPC fined the operator 134.8 billion won (about $91 million) for failing to protect consumer information. This is the highest fine ever issued by the authority, exceeding the 100 billion won fine imposed on Google and Meta in 2022.
In a statement, SKT stated that it is seeking judicial review of the judgment, claiming that the fine does not represent the business's attempts to respond properly following the incident. The operator also questioned how the fine was determined, pointing out that the PIPC based it on SKT's whole mobile service revenue. SKT claims that this method is different from previous situations. In 2023, competitor operator LG Uplus was fined merely 6.8 billion won, with the fine based on earnings from the hacked system.
SKT further stated that “no proven direct or indirect damage to customers has been detected.” The Korea Consumer Agency (KCA), which handles complaints from affected subscribers, has challenged this view. The agency concluded that customers suffered harm and decided that SKT is responsible for the compensation. In December, the KCA ordered SKT to pay each customer 100,000 won in compensation, divided between monthly charge savings and service credits. If the eligible customers claim the compensation, SKT's total payout may be 2.3 trillion won, which is more than the 2024 net profit of 1.43 trillion won. This case will have an effect on how telecom companies handle security, transparency, and customer trust along with strict data protection laws and increasing cyber threats.
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