Seoul: South Korea's telecom watchdog has mandated SK Telecom Co. to partially waive cancellation fees for non-mobile services following a significant data breach that impacted its 25 million mobile service users. This directive comes after the telecom giant initially limited the waiver to mobile service customers only.
According to Yonhap News Agency, the breach was reported in April when SK Telecom revealed that its universal subscriber identity module (USIM) data might have been leaked during an unidentified cyberattack on its servers. The Korea Communications Commission's dispute resolution committee labeled customer contract cancellations as an "inevitable measure" necessitated by SK Telecom's oversight.
The committee highlighted that fixed-line services, which typically include internet and TV, are often bundled, and the associated cancellation fees are considered damages resulting from the data breach. Consequently, SK Telecom is required to cover 50 percent of cancellation fees for these bundled services.
Additionally, the commission instructed SK Telecom to remove its mid-July deadline for compensation applications, allowing mobile service users to submit claims for waived cancellation fees throughout this year.
In a separate decision, the watchdog also directed KT Corp., the second-largest mobile carrier, to honor its promise of gift vouchers to petitioners after the company unilaterally canceled Galaxy S25 preorders in January. The cancellation occurred because KT Corp. failed to inform customers that the offer was limited to the first 1,000 customers.