SKT: "Penalty Fees Are Based on Individual Customer Contracts... Related Figures Are Trade Secrets"

Reluctance to Exempt Penalty Fees for Departing Subscribers
"Cause of the Incident Not Yet Fully Identified"
Chey Taewon: "Difficult to State a Direct Position"

As the idea of "penalty fee exemption" emerges as one of the compensation measures for the SK Telecom (SKT) hacking incident, the company has expressed reluctance, stating that penalty fees are determined by individual customer contracts and agreements.

On May 7, SKT submitted a response to Democratic Party lawmaker Lee Junghun, a member of the National Assembly's Science, ICT, Broadcasting, and Communications Committee, regarding the review of penalty fee exemptions. In its response, SKT stated, "The cause and scale of the incident have not yet been fully identified," clarifying its position. The company interpreted penalty fee exemptions as a matter that can be considered individually within the contractual relationship with each subscriber. This indicates that SKT is not considering a blanket exemption for all departing subscribers.

When Lee's office asked SKT about the reasons for not being able to exempt penalty fees and alternative compensation measures, the company replied, "As investigations by relevant authorities are currently underway, it is difficult to disclose detailed information." At the same time, SKT reiterated its existing position that it will take responsibility if damages occur due to illegal USIM cloning or other consequences resulting from the hacking incident.

If SKT were to decide to exempt departing subscribers from penalty fees, the company avoided giving a direct answer regarding the estimated scale, citing "trade secrets." SKT stated that the number of remaining customers by contract period and the average number of remaining contract months are "trade secrets related to business and marketing strategies and cannot be disclosed." Both the telecommunications industry and authorities believe that only the company knows the exact scale of penalty fees.

Chey Tae-won, Chairman of SK Group, also attended a daily briefing on the hacking incident held at SKT headquarters in Jung-gu, Seoul, on the same day. He commented, "Discussions on penalty fee exemptions are ongoing within the SKT board of directors," and added that, as he is not a board member, it is difficult for him to state a direct position.

Meanwhile, as of the morning of May 7, the number of subscribers who switched from SKT to other telecommunications companies after the hacking incident had reached 250,000, with a net decrease exceeding 200,000.