"Decision to Accept Penalty Fee Waiver After Heated Debate"
"Selective and Focused AI Investment Inevitable"
On July 4, SK Telecom CEO Yoo Youngsang addressed the hacking incident, stating, "I stand here today with deep reflection and sincere remorse regarding the recent cyber intrusion. On behalf of all SK Telecom employees, I once again offer our heartfelt apologies to our customers," as he bowed his head.
During a press conference held at the company's headquarters in Jung-gu, Seoul on the same day, Yoo said, "SK Telecom takes the findings of the government investigation very seriously. We will take full responsibility and promptly implement not only the corrective measures but also all necessary actions to prevent a recurrence."
Yoo further explained, "Since the launch of the Customer Trust Recovery Committee, we have spent over 50 days establishing a mid- to long-term roadmap to strengthen information security. We have also received feedback on providing compensation at a scale that customers can accept, as well as on designing benefits that encompass various customer groups."
As a follow-up measure, SKT announced a customer appreciation package worth 500 billion won and an expansion of information security investment totaling around 700 billion won, reaffirming its commitment to regaining customer trust. The company reiterated its determination to become a more secure and trusted company in the long term.
Regarding the impact of the 1 trillion won 'customer compensation and information protection plan,' Yoo stated, "We expect this to negatively affect our short-term performance. However, the board has determined that, in the mid- to long-term, this is a plan for the benefit of both shareholders and the company, and we must accept that."
Yoo also emphasized, "Following the government's announcement today, we held an emergency board meeting and, after intense discussion, decided to accept the waiver of penalty fees. Previously, our position was that such a waiver was not possible, but after reviewing the government's announcement and recent developments concerning our customers and the market, we concluded that accepting the waiver aligns with the interests of both the company and our shareholders."
He added, "The waiver of penalty fees is expected to result in significant losses for the company. Due to the sharp decline in revenue and profit caused by this incident, we will inevitably need to make selective and focused investments in artificial intelligence (AI). However, since SKT's future lies in AI, we are committed to delivering results in this area."
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