Seoul: SK Telecom Co. announced on Friday its decision to halt new subscriber sign-ups starting next week as part of its efforts to enhance customer protection services following a recent data breach involving the company's network. The suspension will impact 2,600 retail stores nationwide, which will now focus on replacing universal subscriber identity module (USIM) cards, according to Chief Executive Officer Ryu Young-sang.
According to Yonhap News Agency, the suspension will remain in effect until SK Telecom establishes measures to address the shortage of USIM cards. The company also plans to suspend mobile number portability (MNP) transfers, which allow users to retain their mobile numbers when switching service providers. To mitigate the impact on retail stores, SK Telecom has promised compensation for losses incurred during the halt.
SK Telecom has finalized administrative and technical processes to automatically enroll digitally vulnerable individuals in its USIM Protection Service. The service is designed to provide a level of defense against illegal financial activity comparable to that of physically replacing the USIM card. As of Friday, 14.42 million people were enrolled in this service, the company reported.
The move follows an administrative guidance order from the government instructing SK Telecom to pause new sign-ups until a USIM card shortage is resolved and stronger measures to safeguard customer data are implemented. The company, South Korea's largest mobile carrier, with 25 million subscribers, detected a cyberattack on April 18, which revealed signs of a large-scale leak of customer USIM data.
To prevent further damage, SK Telecom is offering free USIM chip replacements to all customers. However, the replacement services have been disrupted due to a limited supply of USIM cards and high demand. The company anticipates that the USIM shortage will ease around May 15, with the arrival of the first batch of new chips. SK Telecom expects to secure 5 million chips by the end of May and another 5 million in June.