SK Telecom Implements Free SIM Card Replacement for 23 Million Customers

In response to the recent hacking incident, SK Telecom has initiated a free SIM card (USIM) replacement for all its subscribers. This measure aims to alleviate customer anxiety early on and restore trust, marking an unusual decision for a domestic telecommunications company to carry out a complete replacement.

On the 25th, SK Telecom announced, "We will replace the SIM cards free of charge for all 23 million customers based on the point in time identified as the occurrence of hacking damage." This comes approximately a week after the incident was recognized.

SK Telecom CEO Yoo Young-sang expressed sincere apologies during a briefing held at the company’s headquarters in Euljiro, Seoul, stating, "We sincerely apologize for causing great inconvenience and concern to our valued customers and society who have trusted and used SK Telecom." He added, "We will ensure that every customer wishing to do so can replace their SIM cards for free anywhere in the country."

Initial Response Criticism…Acknowledgment of Limitations of 'SIM Protection Service'

Initially, SK Telecom introduced a limited measure called 'SIM Protection Service.' This service features a security function that blocks network connections when a SIM card that matches the customer’s authentication information is inserted into unregistered devices. However, due to complex signup procedures and restrictions on overseas roaming, customer dissatisfaction grew.

As of the 25th, approximately 2.4 million customers had subscribed to this service, accounting for only 10% of the total customer base. Following continued criticism regarding the accessibility and effectiveness of the service, the decision for a full free SIM card replacement was eventually made.

Starting from 10 AM on the 28th, SK Telecom will implement SIM card replacements at T World stores nationwide and at airport roaming centers. Any subscriber who was identified at 12 AM on the 18th, when the hacking damage was first recognized, can apply, although some older smartwatches and child phones will be excluded. Users of these devices can apply security features via the existing SIM Protection Service.

Inclusion of MVNO Customers and Retroactive Compensation Measures

The free replacement initiative will also extend to customers using budget phones connected through SK Telecom's network. However, the specific timing and methodology will be separately announced by each budget phone provider. Additionally, SK Telecom has decided to retroactively compensate customers who replaced their SIM cards at their own expense between the 19th and 27th.

Separately, SK Telecom is facing controversy over a 'reporting delay,' as it has been accused of failing to notify relevant authorities within the legal time frame following the detection of the hacking incident. According to Choi Soo-jin, a member of the ruling People Power Party, SK Telecom detected unusual movements within its internal systems at 6:09 PM on the 18th. However, it reported this to the Korea Internet & Security Agency (KISA) two days later at 4:46 PM on the 20th, exceeding the 24-hour reporting obligation by about 22 hours.

While this complete SIM card replacement measure has a strong retrospective nature, it is expected to significantly impact the recovery of customer trust and the re-establishment of security standards within the domestic telecom industry. SK Telecom plans to announce additional follow-up security measures and system improvements in the future.

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