Seoul: SK Telecom Co., South Korea's leading mobile carrier, has declined a settlement proposal from a government-affiliated consumer agency to compensate users affected by a personal data breach. The proposal involved paying 100,000 won (US$69.40) to each of the 58 petitioners involved in the case, industry sources revealed.

According to Yonhap News Agency, SK Telecom communicated its decision in writing to the Consumer Dispute Settlement Commission, effectively rejecting the suggested compensation plan. This decision leaves the petitioners with the option to pursue individual civil lawsuits in court to seek redress.

The company emphasized its previous voluntary compensation efforts and enhanced security measures as factors in its decision. SK Telecom noted that accepting the settlement could lead to a total compensation payout of approximately 2.3 trillion won, if extended to its entire user base.

In a statement, SK Telecom expressed its commitment to restoring customer trust and preventing further incidents, citing the complexity and financial implications of the settlement proposal as reasons for its rejection.

The data breach, which involved a significant leak of universal subscriber identity module data, affected 23 million users and was disclosed in April of the previous year. This disclosure prompted an investigation by regulatory authorities.

In response to the breach, SK Telecom is also challenging a 135 billion-won fine imposed by the state data protection regulator. The company argues that it has already spent 1.2 trillion won to compensate affected users and reform its data protection system.