SK Telecom fined $22,000 over massive data breach affecting millions
What's the story
South Korea's largest mobile carrier, SK Telecom, has been penalized by the government over a major data leak incident. The breach exposed nearly 27 million pieces of user data and was attributed to a malware attack in April. Following the incident, SK Telecom's shares fell by 5.6% on Friday. The country's Ministry of Science and ICT accused SK Telecom of failing to protect USIM (Universal Subscriber Identity Module) data and violating relevant regulations.
Government action
Fine imposed on SK Telecom
The Ministry of Science and ICT has deemed SK Telecom negligent in the incident. It has imposed a fine of up to 30 million won (nearly $21,970) on the company. The ministry also ordered SK Telecom to implement security measures at least once every quarter, have its CEO directly oversee data governance, and increase personnel and investment in data security.
Corporate measures
Company announced steps to compensate affected customers
In response to the government's decision, SK Telecom announced a series of steps to compensate its affected customers and improve information protection. The company will invest around 700 billion won (around $513.38 million) over five years for data protection and provide a 50% discount on August subscription fees for all its affected customers. "All SK Telecom executives and employees take the results of the public-private joint investigation very seriously," said Ryu Young-sang, CEO of SK Telecom.
Financial impact
Revenue forecast revised downward
SK Telecom has also revised its 2025 revenue forecast downward by 800 billion won to account for the cost of about 500 billion won for the customer benefit package related to the cyber breach incident. The company said it would take full responsibility for any harm caused by this breach, which has alarmed its users over the possible theft of personal and financial information.