The final investigation by the joint public-private task force regarding the SK Telecom hacking incident has concluded, and the outline of compensation plans for subscribers due to the hacking incident is expected to materialize in July. Unlike KT and LG Uplus, which experienced past personal information breaches without significant compensation, SK Telecom is said to be considering a substantial compensation package worth hundreds of billions of won to regain subscriber trust.
According to the telecommunications industry on the 30th, SK Telecom plans to announce a compensation plan related to the hacking incident in July. It is reported that SK Telecom is considering a compensation amount of about 20,000 won per person. If SK Telecom provides a fee reduction of 20,000 won per person for its 25 million subscribers (including budget phone users), a revenue loss of about 500 billion won is expected.
Compared to the compensation plans during the past hacking incidents involving KT and LG Uplus, the compensation amount from SK Telecom is relatively large. In 2023, LG Uplus experienced a breach of personal information affecting approximately 290,000 customers, but at that time, they concluded compensation by offering the 'U+ Spam Blocker Alert (subscription service worth 550 won) free to all subscribers'. In contrast, KT had a breach of customer information affecting 8.7 million customers in 2012 and another breach affecting 12 million subscribers in 2014, yet did not provide separate compensation. This was due to the lack of additional damages resulting from the information breach, which meant it did not meet the criteria for compensation.
On the 4th of next month, the Ministry of Science and ICT is expected to announce its stance on whether SK Telecom will be exempt from penalty fees related to this hacking incident. At a parliamentary hearing on the 8th of last month, SK Telecom President Ryu Young-sang said, 'About 250,000 SK Telecom subscribers have already left. If we waive the penalty fees, up to 2.5 million could leave.' He added, 'Assuming a penalty fee of 100,000 won per person, the loss could be 250 billion won, and if up to 5 million people leave, the projected revenue loss in three years could reach 7 trillion won.' There is also discussion that depending on the burden of costs related to the exemption from penalty fees, the compensation amount per subscriber may be adjusted, or the compensation method may shift to providing various free additional services instead of fee reductions. For instance, a 10,000 won fee reduction along with a 10,000 won worth of additional services provided for free.
Even if the Ministry of Science and ICT supports SK Telecom's waiver of penalty fees, the issue of penalties from the Personal Information Protection Commission remains a task that needs to be addressed. This is because the commission previously warned that it would impose a 'penalty surcharge that is incomparable to the past' regarding the SK Telecom hacking incident. According to the Personal Information Protection Act, a business that has leaked personal information can be subject to a penalty surcharge of '3% of total revenue.' If the maximum penalty is imposed, this amount could reach approximately 540 billion won.
These expenses are expected to have a negative impact on SK Telecom's performance and stock price. Ryu Jong-ki, an adjunct professor at Sogang University, noted, 'In the short term, the compensation costs will adversely affect the company's performance and stock price, but depending on how the company responds, it could have a positive long-term effect. If the company goes for substantial compensation, customer trust will increase. If they also outline a concrete roadmap for information protection investment plans, it could lead to a synergistic effect.'
Meanwhile, the report from the Ministry of Science and ICT about the 'Final Investigation Results of the SK Telecom Hacking Incident', which is scheduled to be reported to the National Assembly's Science, ICT, Broadcasting, and Communications Committee task force on the 30th of this month, has been temporarily postponed. After scheduling discussions with the National Assembly, it is expected to be reported in July.