SK Telecom Faces Fallout from Massive Data Breach
SK Telecom is scrambling to repair the damage after a major cyberattack compromised the personal data of nearly 23 million subscribers, roughly half of South Korea’s population. Following a government investigation, the mobile giant is due to be fined up to 30 million won (almost $22,000) and has been ordered to tighten its security. Regulators blamed the company for failing to properly protect USIM data, calling the incident a clear case of negligence.
In response, SK Telecom announced it would invest 700 billion won in cybersecurity upgrades and offer affected users various forms of compensation. All 24 million customers will receive a 50% discount on their August bills, and those wishing to leave the service between April 19th and July 14th can now cancel without any penalties. The company also began offering free USIM card replacements at more than 2,600 stores nationwide, with over 9 million replacements already completed.
The financial impact is steep: SK Telecom revised its 2025 revenue forecast downward by 800 billion won and expects to spend 500 billion won on customer benefits. While CEO Ryu Young-sang acknowledged the short-term hit, he said the company is focused on restoring trust long-term. “All SK Telecom executives and employees take the results of the public-private joint investigation very seriously,” he said.
