Seoul: South Korea’s consumer watchdog has ordered the country’s largest mobile operator, SK Telecom, to compensate customers affected by a major hacking incident that exposed sensitive user data.
The decision was announced by the Korea Consumer Agency after reviewing complaints filed by 58 customers who said they suffered harm following the data breach. Each of these users will receive compensation worth 100000 won, or about 67 US dollars, through a mix of mobile bill discounts and reward points.
The agency said the order was based on findings that SK Telecom failed to adequately protect customer information. It also noted that the company did not respond promptly enough after the breach was discovered.
The hacking incident, which came to light earlier this year, involved the leakage of universal subscriber identity module data. This type of information is critical for mobile authentication and raised serious concerns about the safety of millions of users. SK Telecom later confirmed that data belonging to more than 20 million subscribers may have been exposed.
Following the disclosure, the company launched a nationwide program to replace USIM cards for its customers. Regulators also stepped in, with South Korea’s data protection authority imposing a heavy fine on the telecom operator for violations related to personal data handling.
The consumer agency said the current compensation order applies only to the 58 complainants but could serve as a reference for wider relief. Officials have indicated that if compensation is extended to all affected users, the total cost could run into trillions of won.
SK Telecom has been formally notified of the decision and has been given 15 days to state whether it will accept the order. If the company agrees, the ruling could pave the way for broader settlements with other affected customers.
The case is being closely watched as a test of how South Korea enforces consumer rights and corporate responsibility in the wake of large scale cyber attacks.