"Free Class-Action Application Service"... Controversy Over Marketing Using SKT Hacking Incident

Head Office Responds:
“We Have Taken Steps to Stop This...
We Are Not Exploiting the Hacking Incident”

In an effort to attract subscribers leaving SK Telecom due to the recent USIM hacking incident, a competitor’s marketing campaign offering to handle class-action lawsuit applications on behalf of customers has drawn criticism.

LG Uplus has been confirmed to have sent advertisement text messages to some SK Telecom subscribers, explaining that this hacking incident is a serious issue and that they will represent them in a class-action lawsuit at stores. Screenshot from an online community

According to the telecommunications industry on May 25, an LG Uplus agency recently informed customers that, in the event of a successful class-action lawsuit related to the hacking incident, each individual could receive up to 300,000 won in compensation. The agency stated that customers could apply for the lawsuit at the store without any cost if they brought their ID and SKT service contract certificate. However, it was confirmed that this agency is not a directly managed store, and as a local agency, the scale of the text message campaign was reportedly not large.

Additionally, the text message stated that a device’s unique identification number (IMEI) functions like a “digital door lock password,” emphasizing that this hacking incident is not a simple accident but a dangerous situation comparable to a home door lock code being leaked.

Not only in this case, but also after the SKT hacking incident, KT and LG Uplus agencies have reportedly attempted to lure SKT defectors by posting notices mentioning “SKT hacking” outside their stores or sending text messages to customers suggesting they should consider changing their telecom provider. Furthermore, in open chat rooms created regarding lawsuits over the SKT hacking incident, announcements have been posted stating that benefits will be provided to those who switch their telecom provider to LG Uplus. These messages claimed that LG Uplus offers more benefits than KT and promised to guide customers to the directly managed agency with the best special offers.

While such marketing is to be expected, there has been criticism that campaigns that excessively stoke anxiety or even handle class-action lawsuit applications on behalf of customers are going too far. In particular, at a time when there are discussions about the need for a joint response by the three major telecom companies to increasingly sophisticated advanced persistent threat (APT) attacks believed to originate from China or North Korea, such behavior has drawn strong criticism as highly inappropriate.

Regarding this matter, LG Uplus stated, “The head office does not use the SKT situation for business purposes,” adding, “It has been confirmed that this message was sent by a single agency. We immediately took steps to stop it upon confirmation, and we are considering additional measures.” The Korea Communications Commission has also been made aware of the situation and is reportedly working to ascertain the facts.