SK Telecom Announces 1.2 Trillion Won Compensation and Security Measures… "We Will Compensate Departed Customers"

SK Telecom has acknowledged its responsibility for the cyber intrusion incident and announced a compensation and security plan worth 1.2 trillion won.

This is an unprecedented large-scale apology not only for the telecommunications company but also in the history of domestic businesses, with a bold decision to promise compensation even to customers who have already left the company. There has never been a precedent for compensating customers who have departed from the company.

Compensation for Termination Fees… Taking Responsibility for Departed Customers

The most eye-catching aspect of the "Responsibility and Promise Program" is the commitment to compensate customers who have terminated their contracts and switched to other telecommunications companies. This is interpreted as a gesture to remember the customers who have used the service in the past and to show a responsible attitude.

SK Telecom announced that it will fully waive the "termination fees" for customers who canceled their contracts after April 18, the date of the incident, and for those who plan to cancel by July 14. Customers who have already paid termination fees can apply for a refund.

Moreover, if customers rejoin within six months after cancellation, their previous subscription duration and membership tier will be restored. Even if there are no plans to rejoin, agreeing to store subscription information through the T World app will allow them to receive the same benefits if they rejoin within three years from the date of consent.

Essentially, benefits will be provided even for rejoiners within "three years." Customers who have switched to another telecommunications company and completed a two-year contract there can still enjoy benefits upon returning.

Termination Fees Exclude Device Installment Payments

Termination fees refer to the amount that must be returned if the contract is terminated prematurely within the contract period, which includes all or part of the discounts received.

This includes refunds for device subsidies and selective contract discount refunds. Notably, device installment payments are separate contracts from telecommunications service agreements and, therefore, are not subject to termination fee exemptions under the law.

The waiving of termination fees will be processed as refunds for fees already paid upon application, with detailed information planned to be provided on the T World website.

50% Discount on Communications Fees in August… Investment of 700 Billion Won in Security

As part of customer compensation, SK Telecom will offer a 50% discount on telecommunications fees for the month of August and provide an additional 50GB of data each month until the end of the year. This also applies to budget mobile customers.

Additionally, the company announced plans to invest 700 billion won over the next five years to comprehensively overhaul its security system.

They aim to double their cybersecurity workforce and establish an AI-based integrated security monitoring system, along with conducting simulated hacking by global white hat hackers, targeting security that surpasses domestic standards to achieve global excellence.

Unprecedented Declaration of Responsible Management

This announcement reflects SK Telecom's resolve to acknowledge the responsibility for the incident and offer unconditional apologies.

An industry insider mentioned, "The decision to compensate even departed customers is unprecedented in the telecommunications industry and in the history of Korean businesses," adding, "It will be interesting to see how far SK Telecom's responsible management will extend."

In particular, the decision to waive termination fees has been assessed within the industry as "practically an impossible decision." Neither the National Assembly nor civil organizations and customers expected that actual waivers would be implemented. This is primarily due to the significant losses the company would incur.

From the perspective of telecommunications companies, termination fees from departing customers serve as a loss compensation mechanism and part of revenue; therefore, returning these fees means more than simple compensation—it signifies a willingness to forgo profits if customers left due to the company's responsibilities.

A senior executive in the industry remarked, "This action represents SK Telecom kneeling before its customers," and noted, "It's unprecedented for a company to acknowledge this level of responsibility and go as far as offering refunds."

Yoo Young-sang, the CEO of SK Telecom, reiterated, "We would like to thank our customers for their trust and patience, and we will fulfill our responsibilities regarding this incident and become a company with strong security."

Image Source: News1, SK Telecom CEO Yoo Young-sang / News1