Consumer Agency Initiates Collective Dispute Mediation Process Over SKT SIM Hacking Incident

58 Consumers File for Collective Mediation
Plan to Compensate Remaining Consumers Collectively

The Korea Consumer Agency's Consumer Dispute Mediation Committee announced on September 2 that it has decided to initiate a collective dispute mediation process regarding the SIM card hacking incident involving SK Telecom (SKT).

Previously, on April 18, SKT confirmed the occurrence of a hacking incident targeting its "Home Subscriber Server (HSS)," a device used to verify the validity of SIM card information for mobile service subscribers. On May 9, 58 consumers filed a collective dispute mediation request with the committee, seeking compensation for damages caused by the hacking incident and demanding measures to prevent recurrence.

Employees are demonstrating SIM card reset at an SK Telecom store in downtown Seoul. Photo by Yonhap News

At that time, the committee postponed the initiation of the collective dispute mediation process, citing the need for further fact-finding as multiple agencies were investigating whether personal information had been leaked. Subsequently, after the public-private joint investigation team led by the Ministry of Science and ICT announced the results of its investigation-revealing the leak of 25 types of SIM card information and inadequate account information management by SKT-the committee resumed its deliberations on July 4.

Through its review, the committee determined that the requirements for initiating a collective dispute mediation process had been met, as more than 50 consumers were affected by the hacking incident and the key issues of the case were common both factually and legally. As a result, the committee decided the previous day to initiate the collective dispute mediation process. The commencement of the process will be publicly announced via the Consumer Agency's website and daily newspapers until September 26.

However, considering that up to 23 million people could potentially be affected by this hacking incident and that similar cases have been reported in large numbers to other dispute mediation bodies, the committee will proceed with the public announcement but will not accept additional participation applications. If the company accepts the mediation decision in the future, the committee plans to receive a compensation plan so that consumers who did not apply for mediation can also be compensated collectively.

Han Yongho, chairperson of the Consumer Dispute Mediation Committee, stated, "Since this case involves a large number of consumers and is of significant public interest, we will strive to prepare a prompt and reasonable mediation plan from the perspective of protecting consumer rights and interests."