SK Telecom has decided not to accept the recommendation from the Korea Communications Commission's Communication Dispute Mediation Committee to waive cancellation penalties until the end of the year. According to the telecommunications industry on the 4th, SK Telecom did not submit a separate opinion letter within the response deadline of the previous day, thereby automatically rejecting the recommendation.
Earlier, last month, the Communication Dispute Mediation Committee issued an order that if SK Telecom users cancel their mobile communications service within this year, the entire cancellation penalty should be waived, and for bundled products such as fixed-line internet, half of the penalty should be refunded. In particular, subscribers who applied for cancellation after July 14, which SK Telecom designated as the deadline for waiving penalties, were also included in the waiver.
In response, SK Telecom explained, "We closely reviewed the decision of the mediation committee; however, we concluded that it would be difficult to accept considering the significant impact on the company and the potential for similar lawsuits or a spread to collective disputes."
SK Telecom allocated 500 billion won for consumer compensation and 700 billion won for information protection investments related to the large-scale cyber breach incident that occurred in April. It also stated that 250 billion won was spent by the agency to cover losses due to USIM replacement costs and the suspension of new sales. However, the scale of the penalty waiver has not been disclosed.
An order for mediation requires agreement from both sides to be valid; if one side refuses, it concludes without effect. The industry had anticipated that SK Telecom, which suffered losses of over 1 trillion won due to the hacking incident, would not accept a recommendation that lacks legal binding force. This decision raises the possibility that consumers who applied for mediation may resort to lawsuits if they are dissatisfied with the outcome.