"Voluntary Decision Possible... Little Concern Over Breach of Duty"
Choi Minhee: "Stop Evading Responsibility and Make an Immediate Decision"
The National Assembly Legislative Research Service has determined that it is legally possible to exempt users from penalty fees in connection with the SK Telecom (SKT) hacking incident. Chairperson of the National Assembly Science, Technology, Information and Broadcasting Communications Committee Minhee Choi pressed the company, stating, "If SK Telecom makes a decision, it can exempt penalty fees even now."
On May 4, Chairperson Minhee Choi announced that she had received an official response from the Legislative Research Service to her inquiry, "Is it legally possible for a mobile carrier to voluntarily exempt penalty fees?" The response stated, "Voluntary exemption is possible without legal restrictions."
A notice about the depletion of USIM stock is posted in front of an SKT T World store in downtown Seoul. Yonhap News
In its official response submitted to Choi's office, the Legislative Research Service explained, "SK Telecom's subscription terms stipulate that if a customer's contract is terminated due to a reason attributable to the company, the obligation to pay a penalty fee is waived. Therefore, if this hacking incident is considered a service issue caused by SK Telecom's fault, the penalty fee can be exempted based on this provision."
Even if the application of the terms is ambiguous, the Legislative Research Service assessed that "it is difficult to conclude that it is legally impossible for the company to voluntarily exempt penalty fees." This judgment is based on the autonomy of contracts and freedom of agreement between parties under the Act on the Regulation of Terms and Conditions, meaning that companies can respond flexibly based on management decisions.
The Legislative Research Service also cited the case in 2016 when the three major mobile carriers voluntarily exempted penalty fees during the Samsung Galaxy Note 7 fire incident, adding that voluntary exemption is fully permitted by law.
Regarding SK Telecom's claim that exempting penalty fees could constitute a breach of fiduciary duty, the Legislative Research Service stated, "Given that the exemption decision is for the company's long-term benefit, that imposing penalty fees could lead to class action lawsuits by customers or regulatory sanctions, and that the company's fault in the hacking incident is unclear, it is difficult to conclude that there is clear intent for breach of duty."
Chairperson of the National Assembly Science, Technology, Information and Broadcasting Communications Committee Minhee Choi. Yonhap News
Minhee Choi strongly criticized, "SK Telecom is evading responsibility by saying 'a legal judgment is necessary' or 'a board resolution is required,' thereby stalling for time. If SK Telecom makes a decision, voluntary exemption of penalty fees is possible immediately. Rather than responding passively, SK Telecom should fulfill its responsibility to the public now."
'Penalty fee exemption' has emerged as the biggest issue in the SK Telecom hacking incident. On April 30, lawmakers from both ruling and opposition parties urged, "Exempt penalty fees for customers who want to stop using SKT but cannot switch to another carrier due to the burden of penalty fees." However, SK Telecom has repeatedly avoided giving a direct answer, stating only, "We will review the matter comprehensively and let you know."
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