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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] KT has decided to accept the government’s findings regarding a recent hacking incident and will waive early termination fees for all customers through January 13 next year.
The decision comes just one day after the government concluded that termination fees should be waived for all affected users. Industry observers expect a significant outflow of subscribers, similar to what occurred when SK Telecom previously implemented a comparable policy.
KT confirmed that it will exempt all customers from early termination fees, covering both those who have already canceled their contracts since September 1—when the company first detected abnormal activity related to unauthorized micro-payments—and those who choose to terminate service by January 13 next year.
“KT takes the joint investigation team’s findings very seriously,” said Kim Young-shub, CEO of KT. “We sincerely apologize and will take responsibility by providing compensation and restoring trust.”
In addition to waiving termination fees, KT announced a series of compensation measures for remaining customers, including expanded membership discounts. The company also pledged to invest 1 trillion won over the next five years to strengthen its information security infrastructure.
Despite these measures, analysts expect customer churn to be difficult to contain. When SK Telecom previously offered fee waivers along with a 50% service discount, approximately 837,000 subscribers switched carriers between April 19 and July 4.
KT faces additional challenges as it is not offering direct fee discounts, unlike SK Telecom. Moreover, investigations have revealed that the scope and variety of malware involved in KT’s breach were more extensive, and the exact routes through which personal data were stolen for unauthorized micro-payments remain unclear—fueling continued customer anxiety.
Industry watchers also warn that intensified subsidy competition among mobile carriers targeting KT customers eligible for contract termination could further accelerate subscriber outflows.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
