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"SKT Added 'Penalty Exemption' Clause After FTC Directive... Not Implementing It"

SK Telecom, currently dealing with a USIM data leak incident, was found to have revised its penalty exemption policy following a Fair Trade Commission (FTC) directive ten years ago. Although the company agreed to waive penalties in cases where it was at fault, criticism has arisen that SK Telecom is not implementing the revised policy in the current hacking incident.


According to materials released on May 6 by the office of Choi Minhee, Chair of the National Assembly's Science, ICT, Broadcasting and Communications Committee and member of the Democratic Party, SKT previously operated a policy that imposed penalties uniformly, regardless of fault. In 2015, after the FTC pointed out a violation of the Act on Regulation of Terms and Conditions, SKT revised its terms. The FTC ended its review without issuing a corrective order after SKT voluntarily amended the policy.


At the time, SKT required subscribers to pay penalties for service changes or contract violations, even if the company was at fault. The FTC stated that "the policy required customers to pay penalties even when the company was responsible," and concluded that "this clause imposes an undue burden on customers without sufficient reason and is therefore invalid under the Act on Regulation of Terms and Conditions."


Choi pointed out, "After the FTC's directive, SKT introduced a clause stating that 'penalties may be waived if the contract is terminated due to the company's fault,' but is not applying this in the current USIM data leak incident." She added, "The company is evading responsibility, citing the need for comprehensive internal review and board approval."


"SKT Added 'Penalty Exemption' Clause After FTC Directive... Not Implementing It"


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