After massive breach, SK Telecom rolls out W1.2tr customer-first plan
In August, the telecom operator began implementing a wide-ranging customer benefits program worth 1.2 trillion won ($863 million). The package includes 500 billion won in direct customer benefits and 700 billion won in follow-up information security measures, with benefits continuing through the end of 2025.
Eligible subscribers — including mobile virtual network operator users on SK Telecom's network — are receiving a 50 percent discount on monthly bills in August and an additional 50 gigabytes of data each month through December. The company has also launched a 'T Membership Customer Appreciation Initiative,' offering steep discounts at partner brands such as Starbucks, Paris Baguette and Domino's Pizza. Customers who maximize all benefits can save up to 44,700 won per month.
The compensation plan comes after nearly 26.96 million customer USIM records were compromised in a yearslong hack on SK Telecom. According to the final report from the government-led joint investigation team, the company had been under sustained attack since August 2021. Over nearly four years, hackers infiltrated its servers with 33 types of malicious code, extracting 25 categories of USIM-related customer data that were leaked externally.
Analysts and industry officials describe SK Telecom's compensation initiative as unparalleled in scope compared to previous cases in Korea and abroad.
KT Corp. experienced two large-scale data breaches in 2012 and 2014 that affected nearly 21 million users in total, but offered no direct compensation. LG Uplus, which suffered a hacking incident in early 2023 that exposed 290,000 customer records, provided free access to its 'Spam Blocker Alert' service — a measure estimated to cost about 6 billion won.
International cases show a similar pattern. US telecom operator T-Mobile paid $350 million following a 2021 hacking incident that compromised data from 76 million customers. However, this was a legal settlement tied to a class action lawsuit, not voluntary compensation. AT&T, in the same year, offered only password resets and one year of free credit monitoring after a breach affecting 19 million customers.
Cybersecurity experts note that SK Telecom's swift and transparent disclosure of the breach, coupled with its extensive benefits plan, could help mitigate customer dissatisfaction and attrition.
'Many companies downplay or delay acknowledgment of hacking incidents. SK Telecom, by contrast, has opted for proactive compensation on a scale not seen before in this sector,' one cybersecurity expert said.
'While the long-term impact on SK Telecom's brand and financials remains to be seen, its customer-first response has set a new benchmark for crisis management in the telecom industry.'
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Korea Herald
3 days ago
- Korea Herald
After massive breach, SK Telecom rolls out W1.2tr customer-first plan
SK Telecom has rolled out an unprecedented compensation package following a major customer data breach in April, setting itself apart in an industry where financial redress for cybersecurity incidents remains rare. In August, the telecom operator began implementing a wide-ranging customer benefits program worth 1.2 trillion won ($863 million). The package includes 500 billion won in direct customer benefits and 700 billion won in follow-up information security measures, with benefits continuing through the end of 2025. Eligible subscribers — including mobile virtual network operator users on SK Telecom's network — are receiving a 50 percent discount on monthly bills in August and an additional 50 gigabytes of data each month through December. The company has also launched a 'T Membership Customer Appreciation Initiative,' offering steep discounts at partner brands such as Starbucks, Paris Baguette and Domino's Pizza. Customers who maximize all benefits can save up to 44,700 won per month. The compensation plan comes after nearly 26.96 million customer USIM records were compromised in a yearslong hack on SK Telecom. According to the final report from the government-led joint investigation team, the company had been under sustained attack since August 2021. Over nearly four years, hackers infiltrated its servers with 33 types of malicious code, extracting 25 categories of USIM-related customer data that were leaked externally. Analysts and industry officials describe SK Telecom's compensation initiative as unparalleled in scope compared to previous cases in Korea and abroad. KT Corp. experienced two large-scale data breaches in 2012 and 2014 that affected nearly 21 million users in total, but offered no direct compensation. LG Uplus, which suffered a hacking incident in early 2023 that exposed 290,000 customer records, provided free access to its 'Spam Blocker Alert' service — a measure estimated to cost about 6 billion won. International cases show a similar pattern. US telecom operator T-Mobile paid $350 million following a 2021 hacking incident that compromised data from 76 million customers. However, this was a legal settlement tied to a class action lawsuit, not voluntary compensation. AT&T, in the same year, offered only password resets and one year of free credit monitoring after a breach affecting 19 million customers. Cybersecurity experts note that SK Telecom's swift and transparent disclosure of the breach, coupled with its extensive benefits plan, could help mitigate customer dissatisfaction and attrition. 'Many companies downplay or delay acknowledgment of hacking incidents. SK Telecom, by contrast, has opted for proactive compensation on a scale not seen before in this sector,' one cybersecurity expert said. 'While the long-term impact on SK Telecom's brand and financials remains to be seen, its customer-first response has set a new benchmark for crisis management in the telecom industry.'
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