Chairman Chey Tae-won Issues Public Apology for SKT Hacking, Vows to Prevent Customer Damage (Comprehensive)

Public Apology Issued 19 Days After USIM Hacking
"Security Investments to Be Expanded Across All Group Affiliates"
"Information Security Innovation Committee with External Experts to Be Established"
"Penalty Fee Waivers to Be Reviewed for Fairness and Legal Issues"

Yonhap News Agency

SK Group Chairman Chey Tae-won issued a direct apology regarding the SK Telecom USIM hacking incident. This comes 19 days after the hacking occurred. Along with his public apology, Chey announced that SK would increase security investments across all group affiliates and establish an Information Security Innovation Committee within the group’s top decision-making body, the SK SUPEX Council, which will include external experts.

Chairman Chey Tae-won, who subscribed to the USIM Protection Service, pledges "Support for Rapid USIM Replacement"

On the morning of May 7, at the SKT headquarters in Jung-gu, Seoul, Chey attended the 'Daily Briefing on Cyber Intrusion' and bowed his head, saying, "I apologize on behalf of SK Group." He added, "The series of communications and responses following the incident were inadequate, and the management deeply regrets not having been more attentive from the customer’s perspective." He continued, "Criticism from not only customers but also the media, the National Assembly, and government agencies is justified, and we will humbly accept it. We will fully cooperate with the government investigation to determine the cause of the incident and do everything possible to prevent any customer damage."

At the event, Chey also presented concrete improvement measures along with his apology. He stated, "We will expand security investments across all SK affiliates and establish an Information Security Innovation Committee with external experts. We will approach this not merely as a security issue, but as a matter of national defense, security, and life itself."

The Information Security Innovation Committee will be organized at the level of the group’s top decision-making body, the SUPEX Council. Chey remarked, "This incident made it clear that IT security is not just the responsibility of a specific department, but a critical issue that the entire group must address."

Regarding the controversial issue of penalty fee waivers, Chey said, "We must consider both fairness and legal issues," adding, "The SKT board is currently discussing this matter, and we hope a solution will be found." Chey, who also revealed that he is subscribed to the USIM Protection Service, stated, "We will support those who wish to replace their USIMs so they can do so quickly."

SKT Faces Unprecedented Crisis, Public Opinion Worsens... Group-Level Commitment to Responsibility

Chey’s public apology, delivered 19 days after the incident, was prompted by the fact that the hacking crisis has become a nationwide issue and SKT is facing an unprecedented crisis. An SK Group official explained, "This demonstrates the group’s determination to take responsibility at the highest level. The chairman has personally promised the public that the group will resolve the situation."

Chey’s unexpected appearance drew even more attention as it came immediately after he communicated his intention not to attend the related parliamentary hearing of the National Assembly’s Science, ICT, Broadcasting, and Communications Committee, originally scheduled for May 8. This move is interpreted as the group leader’s intention to address the crisis head-on through a direct public apology, rather than by attending the National Assembly hearing. It also suggests that SK Group internally recognizes this incident as a serious crisis that goes beyond a simple telecommunications disruption.

Since the USIM crisis began, SKT has held daily briefings at 10 a.m. even during the May holidays, announcing measures such as free USIM replacement for all customers, securing 10 million replacement USIMs, automatic enrollment in the 'USIM Protection Service' and its application for overseas roaming (starting from the 14th), making every effort to resolve the situation. As of 6 p.m. on May 6, SKT announced that 24.11 million customers (including those using SK Telecom networks via budget phone services) had signed up for the USIM Protection Service. This includes all eligible customers except those using overseas roaming plans. As of the same date, 1.07 million customers had replaced their USIMs.

However, the slow pace of USIM replacements led to customers queuing in front of retail stores, and the issue of penalty fees for customers wishing to switch to other carriers due to hacking concerns further fueled consumer dissatisfaction, which did not subside easily. Signs of subscriber churn emerged, and public opinion deteriorated rapidly.

Meanwhile, following the SKT hacking incident, nearly 250,000 users switched to other carriers. The net decrease exceeded 200,000. From April 22, when the SKT server hacking was confirmed, until the day before the article was published, a total of 248,069 users moved from SKT to other carriers. Even after accounting for users who switched from other carriers to SKT during the same period, the net loss amounted to 207,897.