KT Fined for Failing to Block 'Gajja Beonho' Omitted from Business Report

Marketing Agency Using KT Network Illegally Changed 070 Numbers to 010 Numbers
KT Fined 12 Million Won for Failing to Block Number Manipulation
Capital Markets Act Requires Disclosure of Fines in Business Reports... KT Omitted the Information

KT was fined last year for failing to prevent a text message agency from 'spoofing caller ID' using its telecommunications network, but it was confirmed that this information was omitted from the business report. KT explained that it was a mistake made during the report preparation process.

According to the industry on the 26th, a text message agency using KT's network was caught last year for unauthorizedly changing internet phone numbers starting with 070 to mobile phone numbers starting with 010. They changed the numbers to 010 because mobile phone users tend to recognize numbers starting with 070 as spam calls and often do not check them carefully.

KT was fined 12 million won for failing to prevent this, but such information was omitted from the business report. A KT official said, "It is true that we were fined 12 million won by the Central Radio Management Office in October last year," but added, "The omission occurred due to a mistake during the preparation of the business report."

Telecommunications companies including KT are required under Article 84, Paragraph 2 of the Telecommunications Business Act, which deals with 'prohibition of false display of phone numbers and protection of users,' to technically block or ensure the original number is displayed when a business using their network manipulates numbers. Besides KT, SK Broadband, LG Uplus, and LG HelloVision were also fined last year for failing to block fake numbers.

According to the Capital Markets Act, listed companies must include monetary sanctions such as fines and penalties, as well as warnings or corrective orders, in their annual business reports. The fine imposed on KT for failing to prevent caller ID spoofing by the text message agency falls under this requirement.

An official from the Financial Supervisory Service stated, "If a company receives criminal punishment related to its business operations or sanctions for violating legal obligations, such details must be included in the business report," and added, "If an omission is recognized, depending on the severity of the matter, supplementation or correction may be requested."