"So How Much Is Waived?"...SKT Offers Penalty Compensation Even for Departed Customers, Device Installments Not Included [Q&A]

"50% Discount on August Mobile Bills for All SKT Customers"

On July 4, SK Telecom decided to fully waive early termination penalties for contract customers. This decision was made as an acknowledgment of responsibility for the large-scale SIM card data leak incident that occurred in April.

As a result of this decision, customers who have switched or plan to switch from SKT to another carrier after the incident will be exempt from early termination penalties. Additionally, SKT will offer all customers a 50% discount on August's mobile bill, provide an extra 50GB of data per month until the end of the year, and offer 50% discounts at partner brands.

On the afternoon of the 4th, Yoo Sangyoung, CEO of SK Telecom, is apologizing at a press conference held at the SKT headquarters in Jung-gu, Seoul. Photo by SK Telecom

The main details of the penalty waiver announced today are summarized in a Q&A format below.

- Who is eligible for the penalty waiver?

▲Customers who were using SKT as of midnight on April 18, the date of the cyber intrusion incident, are eligible. Among these customers, those who terminated their contracts or plan to terminate their contracts between April 19 and midnight on July 14 can receive the penalty waiver. Even if a customer has already switched to another carrier, they can receive a refund of the penalty. However, customers who joined SKT after April 19 are not eligible for the waiver. SKT will notify all customers about the penalty waiver via text message. Customers who have already left SKT for another carrier will also be informed about the penalty refund process.

- How can customers apply for a penalty refund?

▲Penalty refund applications can be submitted starting July 15. Applications can be made through the online T World portal, official authorized stores, or the customer service center. The refund will be deposited into the applicant's account within a week of the application date. SKT is building an online system to facilitate refund applications. From July 5, customers can check their eligibility and the refund amount through the T World website.

- What types of penalties are being waived?

▲Telecom contracts are generally divided into two types: device discounts and rate plan discounts. Customers receive either a discount on the device price or on their service fees in exchange for maintaining service for a set period. If the discount is on the device price, it is called a "public subsidy contract," and if the discount is on the service fees, it is called a "selective contract discount." If a customer terminates the contract early and switches to another carrier, penalties are incurred for both types. The public subsidy penalty is for the device discount, while the selective contract penalty is for the discounted service fees. The public subsidy penalty decreases after six months from the contract start date, and the selective contract penalty decreases after half of the contract period has elapsed.

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With this decision, customers who have left or plan to leave SKT for another carrier will be exempt from these penalties regardless of the remaining contract period. However, the remaining device payments for both public subsidy and selective contract customers are not included in the waiver, as device payments are for the purchase of the handset, not the service fees. For example, if a customer purchased a phone for 1.5 million won and received a 500,000 won public subsidy by agreeing to use a certain rate plan for a set period, the penalty for the 500,000 won subsidy will be waived. The remaining 1 million won for the device must still be paid. If the device payment was being made in installments, the customer can continue the installments or pay off the remaining balance in a lump sum.

The same applies to the selective contract. The selective contract provides a 25% discount on service fees for agreeing to use a carrier for a set period and is unrelated to the device price. Even if a customer purchased a 1.5 million won phone under a selective contract, the discount only applies to service fees. In this case, the penalty that is waived is the refund of the discounted amount, and the 1.5 million won device payment is unaffected. If the customer was paying for the device in installments, they may continue the installments or pay the remaining balance in a lump sum.

- What about penalty waivers for customers with bundled services such as internet, TV, and landline combined with SKT wireless products?

▲This penalty waiver applies only to wireless (mobile) services. If a customer terminates a contract for internet, TV, or landline services with remaining contract periods, penalties for those wired services will still apply.

- What benefits are available for customers who continue using SKT?

▲A "Customer Appreciation Package" will be provided, including discounts on service fees, additional data, and membership benefits. First, customers subscribed as of midnight on July 15 will receive a 50% discount on their August bill. The discount will be applied automatically without a separate application. Customers using budget phones (MVNOs) on the SKT network will also receive a 50% discount on their August bill. Additionally, from August until the end of the year, all customers will receive an extra 50GB of data per month. Some children's and youth plans with data limits will not automatically receive the extra data, but a legal guardian may opt in through the customer service center or authorized stores. If a customer has children under 19, the legal guardian can choose whether to receive the extra data. Through the T Membership program, customers will also receive at least 50% discounts at partner brands each month starting in August.

- If a customer leaves SKT for another carrier and then rejoins, will they lose their long-term customer benefits?

▲If a customer rejoins SKT within six months, they will retain all previously accumulated long-term customer benefits, including membership privileges and years of service. The 50% membership discount benefit from the Customer Appreciation Package will also remain available.