Latest news with #RyuYoung-sang
Korea Herald
02-05-2025
- Business
- Korea Herald
SKT freezes new sign-ups, toughens consumer protection amid hacking fallout
SK Telecom said Friday it will suspend new subscriber sign-ups at its retail stores starting from Monday, to expedite USIM card replacements and to enhance customer protection in the fallout of a massive data leak from a recent hacking incident. In a press briefing at the company's headquarters in downtown Seoul on Friday, CEO Ryu Young-sang announced that all 2,600 T World stores nationwide will halt receiving new subscriptions so the company can focus on replacing compromised USIM cards. It will also stop mobile number portability services, which allows users to switch mobile network providers while retaining their phone number, until the USIM shortage eases. Additionally, SK Telecom said it will compensate for losses incurred by the T World stores during this replacement period. As for the detailed compensation plan, Ryu said it will be implemented after consulting with dealers. 'When looking at the distribution network, 350 of the 2,600 T World stores are directly operated by SK Telecom, and the rest are authorized dealerships. They are also small and-medium-sized enterprises, so asking them to stop taking new subscriptions could be a huge loss,' said Ryu. However, the latest service halt does not extend to third-party retailers and online distributors, which are not under direct contract with the company. The latest action is in response to the government's guidance issued the previous day, instructing SK Telecom to suspend new subscriptions until it resolves the USIM shortages for existing users and implement stronger corrective actions in response to the data breach. SK Telecom, the country's largest mobile carrier with 25 million subscribers, serving nearly half of Korea's population, disclosed that it had experienced a cyberattack and subsequent data breach of customers' USIM data on April 18. In response, the telecom giant said it removed the malware, isolated affected servers and enhanced security measures. The company began offering free USIM chip replacements to all users on April 28, but it has been challenged due to overwhelming demand and a supply crunch, causing long lines at retail stores and system outages on its online reservation site due to high traffic. The company has about 1 million USIM cards in stock, with plans to secure around an additional 5 million this month and another 5 million in June. Amid the slow USIM swap rollout, the company said it will automatically enroll all customers into its USIM Protection Service without requiring a separate application. The company asserts that the USIM Protection Service effectively blocks the use of illegally cloned USIM cards on other devices, providing the same level of protection as physically replacing the USIM. As of Friday, 14.42 million people had joined the protection service, leaving out some 8.5 million others. The system can handle up to 1.2 million enrollments per day. The company plans to complete the process by May 14, with priority given to subscribers aged 75 or older and those with disabilities. Following the hacking incident, SK Telecom is experiencing a massive user exodus to its main rivals, KT and LG Uplus. According to the Korea Telecommunications Operators Association on Friday, more than 237,000 customers had switched from SK Telecom to other carriers, including KT and LG Uplus, in April alone, an 87 percent increase from March. Amid growing calls to waive early termination fees for users, Ryu said the issue is still under review. 'The penalty fee is such a critical matter that the CEO cannot unilaterally decide, but must be approved by the board,' he said. 'We plan to have a board of directors discussion as soon as the internal legal review is completed.'
Korea Herald
02-05-2025
- Business
- Korea Herald
SK Telecom to halt new sign-ups next week as part of USIM data breach measures
SK Telecom Co. said Friday it will suspend new subscriber sign-ups starting next week as part of its efforts to enhance customer protection services following a recent company network data breach. "From May 5, our 2,600 retail stores will halt new subscriptions and focus on replacing universal subscriber identity module cards," Chief Executive Officer Ryu Young-sang said in a press briefing. "The suspension will remain in place until we establish measures to address the USIM supply shortage." The move came a day after the government issued an administrative guidance order instructing SK Telecom to pause new sign-ups until it resolves a shortage of USIM cards and stronger measures are implemented to protect customer data. SK Telecom, the largest mobile carrier in South Korea with 25 million subscribers out of a population of 50 million, detected a cyberattack on April 18 and discovered signs of a large-scale leak of customers' USIM data. To prevent possible damage, the company is offering free USIM chip replacements to all of its customers, but replacement services have faced disruptions due to a limited supply of USIM cards and high demand from concerned users. (Yonhap)
Korea Herald
30-04-2025
- Business
- Korea Herald
Long lines at airport for USIM cards
A crowd is seen gathered near a SK Telecom roaming center in Terminal 1 of Incheon Airport on Wednesday, as travelers rush to swap their USIM cards before traveling abroad. SK Telecom, a Korean mobile carrier with 25 million users, is offering free USIM card replacements as part of its response to a recent data hacking incident. The severity of the data breach is the worst in the history of the country's telecommunications industry, SK Telecom CEO Ryu Young-sang said Wednesday. (Photo by Yonhap)
Korea Herald
30-04-2025
- Business
- Korea Herald
SK Telecom scrambles to restore trust after massive data breach
Hit by 'worst-ever' hack, telecom giant loses 70,000 users in just two days South Korea's leading mobile carrier SK Telecom is facing mounting fallout from a recent hacking incident, with more than 70,000 users switching to rival providers in just two days after the company began offering free USIM card replacements. Amid growing concerns that the data breach could spill over into the financial sector, South Korean financial authorities on Wednesday launched an emergency response team and tightened security protocols. According to industry sources, 35,902 SK Telecom users switched to other major carriers Tuesday, following 34,132 users who switched Monday. During the same period, SKT gained only 11,991 new users. 'If we include those who moved to budget mobile carriers, the actual scale of the exodus is likely even higher,' an industry official said. Roughly 60 percent of users who left SKT migrated to KT, while most of the remaining subscribers switched to LG Uplus. SK Telecom CEO Ryu Young-sang acknowledged the severity of the cyberattack Wednesday, calling it 'the worst hacking incident in the history of the telecommunications industry,' during a parliamentary hearing held by the National Assembly's Science, ICT, Broadcasting and Communications Committee. When Rep. Park Jeong-hun of the People Power Party asked whether the severity of the incident was due to a breach of a system once considered virtually impenetrable, Ryu admitted it was. He added that it will take at least three months to completely replace USIM cards for the company's roughly 25 million subscribers. 'I sincerely apologize once again for the recent cyber incident. Our initial response was lacking in many ways. We will do everything we can to restore trust and resolve the situation,' Ryu said. He noted that SKT's USIM Protection Service offers a comparable level of security and that both he and SK Group Chairman Chey Tae-won are using the service without replacing their USIM cards. Regarding the possibility of additional data leaks beyond the three Home Subscriber Servers confirmed to have been breached, Ryu said further confirmation would depend on an ongoing joint investigation by government and private sector experts. Earlier in the day, the Financial Services Commission and the Financial Supervisory Service held a joint meeting with key financial infrastructure institutions and industry associations to coordinate risk prevention measures in response to the SKT data leak. According to the authorities, no signs of fraudulent activity had been detected so far. However, FSC Secretary-General Kwon Dae-young urged financial institutions to remain vigilant, warning that a spillover into financial systems could cause serious damage. 'We will operate a dedicated emergency response center and require financial institutions to report daily on any irregularities,' Kwon said. 'Special attention must be given to vulnerable groups, such as the elderly, to ensure no one is left exposed.' He also instructed key financial infrastructure providers to strengthen their cybersecurity protocols. The cyberattack — confirmed to have resulted in the leak of about 9.7 gigabytes of data after an SK Telecom server was infected with malware on April 18 — is delivering a significant blow to the telecom giant. While SKT still leads its competitors in subscriber numbers — with KT at 13.3 million and LG Uplus at 10.9 million — the company is expected to face major financial burdens, including regulatory fines and legal costs, as users prepare to file a class action lawsuit. Four SKT subscribers have already filed a lawsuit with the Seoul Central District Court, each seeking 10 million won ($7,300) in damages over the data breach. An online community organizing a class action lawsuit has amassed around 50,000 members. Shinhan Securities estimated that the cost of USIM card replacement alone could reach up to 200 billion won, based on an average replacement cost of 4,000 won per card for the entire subscriber base of 25 million.
Korea Herald
25-04-2025
- Business
- Korea Herald
SKT apologizes for hacking breach, offers free USIM replacements
SK Telecom Chief Executive Officer Ryu Young-sang apologized Friday for the recent hacking incident involving the partial leakage of customers' universal subscriber identity module information, pledging to reinforce security measures and replace all customers' USIM cards. 'We sincerely apologize to our valued customers and the public for the significant concern and inconvenience caused by this incident,' Ryu said in a press conference at the company's headquarters in central Seoul. 'As an additional step, we will offer free USIM card replacements for all SK Telecom users who wish to make the change.' The announcement follows the company's introduction of enhanced fraud detection systems and its USIM protection service. The telecom carrier emphasized that the latest measure aims to ease anxiety among customers in the wake of the breach. Starting at 10 a.m. Monday, all SK Telecom customers will be eligible for free USIM replacement at the company's offline stores and airport roaming centers nationwide. Smartwatches and kids' phone lines are excluded from the program. In cases where demand exceeds capacity, customers will be allowed to make a reservation. SK Telecom also said that it would retroactively reimburse customers who had already paid for USIM replacements between April 19 and 27. The company said that the initiative will be extended to mobile virtual network operator subscribers using the telecom carrier's network. Each MVNO will provide separate notifications regarding implementation details and timelines. In response to the breach, the company has raised its fraud detection thresholds to the highest level and is ramping up real-time monitoring to detect and prevent any abnormal USIM authentication attempts. As of Thursday, more than 2.4 million customers had enrolled in the USIM protection service, with a record 2.06 million signing up between Tuesday and Thursday. The company also plans to enhance the service to enable secure USIM protection even during overseas roaming by next month. 'Customer trust is our top priority,' Ryu said. 'We'll continue to strengthen our security infrastructure and ensure that customer data is protected to the highest standards. Through this incident, we are reminded to return to the fundamentals and reaffirm our responsibility as a trusted corporation.'
