Consumer agency urges SKT to pay 100,000 won to each claimant in data breach case
SK Telecom (SKT) must now compensate victims of a major data breach after a ruling by the Korea Consumer Agency. The decision orders payments of 100,000 won ($68) per affected individual. This follows months of disputes over the April cyberattack that exposed the personal details of millions.
The company has repeatedly resisted earlier proposals, including a 300,000 won offer from a government mediation panel. Now, with a formal ruling in place, SKT faces a tight deadline to respond or challenge the decision.
The breach occurred in April when hackers targeted SKT’s home subscriber server. Around 23 million people were affected, making it one of South Korea’s largest data leaks. A group of 58 customers filed a complaint, prompting the Korea Consumer Agency to intervene.
The ruling requires SKT to provide each claimant with a compensation package. This includes a 50,000 won discount on telecom bills and 50,000 T Plus Points, a form of store credit. The decision aligns with findings from a joint government investigation and disciplinary actions by the Personal Information Protection Commission (PIPC). SKT had previously rejected multiple settlement attempts. In one case, the PIPC’s mediation panel proposed 300,000 won per victim, which the company turned down. It also ignored a separate ruling from the Korea Media and Communications Commission, which had called for penalty fee waivers and partial refunds. The financial impact could be enormous. If all 23 million victims claim compensation, SKT may face costs of up to 2.3 trillion won. The company has already spent over 1 trillion won on earlier compensation and cybersecurity improvements. On top of this, the PIPC fined SKT 134.8 billion won for the breach. SKT now has 15 days to inform the Korea Consumer Agency of its next steps after receiving the official ruling. If it chooses to fight the decision, it must file a legal challenge by mid-January.
The ruling forces SKT to address the fallout from the April data leak with direct payments to victims. With deadlines approaching, the company must decide whether to accept the terms or pursue further legal action. Either choice will have significant financial and operational consequences for South Korea’s largest telecom provider.
