Legislative Research Service: "KT's Breach of Terms Has Grown More Serious"

Based on Interim Findings of the Joint Public-Private Investigation into the Hacking Incident
Choi Minhee, Science and ICT Committee Chair, Urges Ministry to Take Proactive Measures Including KT Penalty Fee Exemption

Based on the recently released interim investigation results from the joint public-private investigation team regarding the KT hacking incident, the National Assembly Legislative Research Service has determined that the need to exempt KT customers from penalty fees has become even more pressing.

Choi Minhee, Chairperson of the National Assembly's Science, ICT, Broadcasting and Communications Committee (Democratic Party of Korea), announced on the 17th that after making an additional inquiry to the Legislative Research Service regarding the possibility of waiving penalty fees for KT users, she received a response stating that "the severity of KT's breach of its terms and conditions has increased." The Legislative Research Service had already conveyed to Chairperson Choi last month that there were grounds for KT to be held responsible for waiving penalty fees.

After reviewing the interim investigation results, the Legislative Research Service explained, "Compared to our previous response, it appears that the degree of KT's negligence and the seriousness of its main obligation violations toward users have grown even greater."

The Service specifically pointed out inadequate management of small base stations (femtocells), weak core network access controls, and actions that could be seen as obstructing the investigation, such as improper disposal of problematic servers and submitting false information about the timing of their disposal. It also cited evidence of ARS and SMS information being leaked externally, concluding that KT failed to fulfill its fundamental contractual obligation to provide safe telecommunications services.

However, the Legislative Research Service added that, compared to the SK Telecom hacking case, the scale of KT's subscriber identification number leak was smaller, and the fact that damages from small-sum payments were not actually billed but instead waived should be considered when assessing the extent of the main obligation violation. The Service also explained that, depending on the final investigation and prosecution results, it would be necessary to determine whether there was intent or gross negligence.

Chairperson Choi called on the Ministry of Science and ICT to take proactive measures, including the exemption of penalty fees for KT customers.