Korea Ratings: SK Telecom May Incur 400 Billion KRW in Hacking Incident... Limited Impact on Credit Rating

Korea Ratings has projected that SK Telecom may incur expenses of over 400 billion KRW as a result of the hacking incident. However, the agency assessed that the impact of the hacking incident on the company’s credit rating will likely be limited.

On the 28th, customers waiting to replace their SIM cards visited an SK Telecom directly managed store in Mapo-gu, Seoul. SK Telecom plans to offer free SIM card replacement services to subscribers starting today. 2025.4.28. Photo by Kang Jinhyung

In a recent report, Korea Ratings stated, "SK Telecom's direct expenditures related to the incident are expected to include the cost of SIM card replacements and fines imposed under the Personal Information Protection Act," adding, "The total expenditure could exceed 400 billion KRW, although the actual fines imposed are expected to be less than this figure."

However, the agency warned that subscriber churn could have a negative impact. Korea Ratings noted, "If subscriber churn continues while new subscriber recruitment is suspended, there is a possibility that SK Telecom's leading market position in the wireless telecommunications sector, which supports its credit rating, could decline," and further pointed out, "An increase in marketing expenses to maintain the subscriber base and market share could have a greater impact on creditworthiness than SIM card replacement costs or fines."

The agency also stated, "We will verify the actual costs of free SIM card replacements and the amount of fines imposed under the Personal Information Protection Act," and added, "We will monitor the trend of subscriber churn and assess how this data breach affects the company's major financial indicators, including revenue and operating profit."

Additionally, Korea Ratings emphasized, "If deemed necessary, we plan to reflect not only quantitative indicators but also a reassessment of qualitative evaluation factors in our telecommunications sector methodology, such as market position, service capabilities, regulatory environment, and both the quantity and quality of the subscriber base, in the credit rating."