SK Telecom Faces Fines Over Data Breach, Ordered to Implement Security Reforms
SK Telecom faces fines of up to 30 million won and is mandated to implement security reforms following a data breach affecting 26.96 million users. The breach exposed sensitive USIM information due to poor management and unencrypted data. The government has ordered enhanced security measures, including improved password controls and direct reporting to the CEO by the chief security officer. In response, SK Telecom plans to invest 700 billion won in cybersecurity and has launched a 500 billion won customer relief program. The company also revised its 2025 sales forecast down to 170 trillion won, and its shares fell nearly 6%.
SK Telecom is facing up to 30 million won in fines and has been ordered to carry out sweeping security reforms after a major data breach exposed the USIM information of 26.96 million users.
USIM stands for universal subscriber identity module cards used in smartphones.
The breach, caused by poor account management and unencrypted sensitive data, affected 28 servers and leaked 9.82GB of information, South Korea's Ministry of Science and ICT said in a Friday release.
The government ordered SK Telecom to strengthen password controls, encrypt key user data, improve breach reporting practices, and restructure its cybersecurity governance by mandating the chief security officer to report directly to the CEO.
In response, SK Telecom announced a variety of measures to compensate its affected customers and bolster its information protection.
The company said it will invest 700 billion won over five years to set up an information protection system, guided by the US National Institute of Standards and Technology's Cybersecurity Framework.
The telecom company also rolled out a 500 billion won customer relief program that includes free SIM replacements, enhanced fraud detection, extra mobile data, August bill discounts, and waived cancellation fees for affected users.
SK Telecom slashed its 2025 sales forecast to 170 trillion won from 178 trillion won to account for the cost of the customer benefit package tied to the data breach.
Shares of SK Telecom fell nearly 6% at market close.