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State Panel Recommends SK Telecom Compensate Customers for Data Breach

Seoul: A state mediation panel announced on Tuesday that it has advised SK Telecom Co., South Korea's leading mobile carrier, to disburse 300,000 won (approximately US$208) in damages to each complainant following a significant data breach that occurred in April.

According to Yonhap News Agency, the recommendation was reached during a plenary session held by the Personal Information Dispute Mediation Committee on Monday. The decision comes after 3,998 individuals, including three instances of collective disputes, sought mediation concerning issues with SK Telecom. The data breach in question involved a large-scale cyberattack on the company's main servers, potentially compromising the universal subscriber identity module (USIM) data of 23 million subscribers.

In response to the breach, SK Telecom devised a substantial 500 billion-won compensation plan for affected customers. This program, which was rolled out in August, included mobile rate reductions, additional data offerings, and discount coupons as part of the company's efforts to mitigate the impact of the data leak.

The committee determined the suggested compensation amount based on the anxiety and inconvenience experienced by subscribers due to the breach. Alongside the financial recommendation, the panel urged SK Telecom to implement internal control measures and enhance the safety protocols of its personal data management systems. This advisory was communicated to both the company and the complainants.

Both SK Telecom and the affected parties have a 15-day window to decide on accepting the proposal. If either party rejects it, the dispute will be concluded without a settlement.

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