SKT Fully Waives Penalties for Cyber Breach... "700 Billion Won Security Investment, 500 Billion Won Compensation Package"

Penalty Waiver for Customers Planning to Cancel by July 14
Cyber Breach Insurance Coverage Raised from 1 Billion Won to 100 Billion Won
50% Discount on August Bill and 50GB Monthly Data for All Customers

Yonhap News

SK Telecom has taken responsibility for the large-scale cyber breach that occurred in April and has decided to fully waive early termination penalties for contract customers. On July 4, the company also announced its "Responsibility and Commitment" program, which includes a 700 billion won overhaul of its information security system and a 500 billion won customer compensation plan, as part of efforts to restore trust.

Earlier that morning, the Ministry of Science and ICT officially determined that SKT had neglected its primary contractual duty as a telecommunications operator to protect USIM information and had also failed to fulfill its obligations under the Information and Communications Network Act. The ministry stated that this constitutes grounds for penalty waiver under the terms of service. The government also indicated that if SKT refused to comply, it could consider corrective orders or even revocation of SKT’s registration under the Telecommunications Business Act. Through this announcement, SKT has fully accepted the government's decision and is taking voluntary action to regain public trust.

SKT will waive early termination penalties for contract customers who canceled their service after the breach or plan to do so by July 14. Yoo Youngsang, CEO of SKT, stated, "We sincerely apologize once again to our customers and society for the cyber breach."

The penalty waiver applies to device subsidy and optional contract discount refunds incurred upon contract termination. Customers who have already paid these fees can apply for a refund. However, device installment payments are governed by separate purchase agreements and are not eligible for waiver.

In addition to the penalty waiver, SKT has introduced practical measures to alleviate customer concerns and prevent recurrence. The company will enhance its "Customer Assurance Package" by providing the global security solution Zimperium free of charge to all customers for one year and introducing a guarantee system that offers compensation in the event of a cyber breach. The coverage limit for the company's cyber breach insurance has also been increased 100-fold, from 1 billion won to 100 billion won.

Over the next five years, SKT plans to invest a total of 700 billion won to double its information security workforce and significantly strengthen its security technologies and systems. The company will elevate the Chief Information Security Officer (CISO) organization to report directly to the CEO and will appoint security experts to the board of directors. SKT aims to establish a systematic internal and external security inspection framework to achieve global-level security capabilities.

There is also a "compensation package" as a gesture of appreciation to customers. All customers will receive a 50% discount on their August telecommunications bill, an additional 50GB of data per month until the end of the year, and a series of discounts with partner brands, totaling 500 billion won in benefits. The eligible recipients include approximately 24 million customers, encompassing both SKT subscribers and users of budget phones that utilize the SKT network.

SKT stated that detailed information regarding these measures will be communicated via text message and the company website, and emphasized its commitment to responsibly implementing all actions necessary to restore customer trust.