Will KT Exempt Cancellation Fees? Government Says "If Obligation to Provide Safe Telecommunications Was Violated, Exemption Applies" (Comprehensive)

Ministry of Science and ICT: "Measures will be taken based on the investigation results"
KT: "Actively considering cancellation fee exemptions for 20,000 customers affected by the data breach"

The government has stated that it is possible to waive penalties in connection with the unauthorized small payment incident and hacking damages at KT. KT has decided to actively consider waiving penalties for customers who suffered personal information leaks.

Ryu Jemyoung, the Second Vice Minister of Science and ICT, said at a hacking incident hearing held by the National Assembly Science, Technology, Information, Broadcasting and Communications Committee on the afternoon of the 24th, "If a service provider fails to fulfill its obligation to provide secure telecommunications, I believe that a penalty waiver should naturally be implemented." He added, "Whether or not there was a violation of duty will be clearly determined by the investigation team, and appropriate measures will be taken accordingly."

On the 24th, witnesses including Kim Youngseop, CEO of KT, attended a hearing on the large-scale hacking incident in telecommunications and finance held by the National Assembly Science, Technology, Information, Broadcasting and Communications Committee. From the front row left, Yoon Jongha, Vice Chairman of MBK Partners, Cho Jwajin, CEO of Lotte Card, and Kim Youngseop, CEO of KT. September 24, 2025 Photo by Kim Hyunmin

Vice Minister Ryu referred to the SK Telecom USIM information hacking case in April, explaining, "When the decision was made to waive penalties at that time, it was because the investigation revealed a clear breach of duty by the telecommunications operator to provide safe services to users, which led to the penalty waiver decision."

KT is actively reviewing penalty waivers for customers affected by the personal information leak. In response to a question from Assemblyman Han Minsu of the Democratic Party of Korea about whether KT is considering a penalty waiver for customers, Kim Youngseop, CEO of KT, replied, "We will actively consider it for the 20,030 customers who suffered damages due to information leaks."

However, CEO Kim explained that regarding a penalty waiver for all customers, "We are considering it, but will review the matter after seeing the final investigation results and taking into account the extent of the damages."

Previously, on the 18th, KT made a second report to the Personal Information Protection Commission, confirming that the subscriber identification numbers (IMSI), device identification numbers (IMEI), and mobile phone numbers of 20,030 customers had been leaked. These customers have a history of receiving signals from illegal micro base stations (femtocells).

Assemblywoman Hwang Jeonga of the Democratic Party of Korea stated, "Trust has been completely broken, so waiving penalties for all customers is only natural," and urged, "KT should not just talk about compensation, but also provide legal compensation for mental damages."

Assemblyman Lee Haemin of the Rebuilding Korea Party also emphasized, "For customers whose IMEI has been leaked, it is necessary to allow them to change their mobile devices. I believe this is the last way to regain customer trust. Otherwise, KT should consider a penalty waiver as SK Telecom did."