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Government's Decision on Waiving Early Termination Fees for SKT Customers Due by June's End

By the closing of June, authorities will reportedly determine whether SK Telecom (SKT) subscribers will be relieved of early termination charges, in light of the recent SIM card hacking case.

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Expected Decision by End of June: Potential Waiving of Early Termination Fees for SK Telecom Users...
Expected Decision by End of June: Potential Waiving of Early Termination Fees for SK Telecom Users due to SIM Card Hacking Incident.

Government's Decision on Waiving Early Termination Fees for SKT Customers Due by June's End

Rewritten Article:

TRAVELERS LINE UP TO SWITCH SIM CARDS AT AIRPORT AS SK TELECOM FACES MASSIVE SUBSCRIBER EXODUS

Incheon International Airport's Terminal 1 roaming center saw a rush of travelers changing their SIM cards on May 4 [YONHAP]. This surge comes amidst SK Telecom's ongoing subscriber exodus due to a major data breach.

SK Telecom, South Korea's largest mobile carrier, is grappling with a significant subscriber drain following a data leak involving universal subscriber identity module (USIM) data. As of early May, over 250,000 subscribers have already left, with fears of the number climbing to 2.5 million or even higher [2][5]. The exodus was primarily prompted by concerns over data security, causing many to switch to competitors KT Corp. and LG Uplus Corp. [2][4].

The financial implications of this mass exodus are substantial. SK Telecom estimates potential losses of up to 7 trillion Korean won (approximately $5 billion) over three years, encompassing waived early termination fees and lost revenue [1][2][5]. Waiving these fees could further worsen the financial loss, with as much as 250 billion won at stake for an average fee of 100,000 won per person for 2.5 million users [5].

This data breach has also sparked broader security concerns, particularly revolving around potential smishing attacks due to the leaked data. Smishing, or SMS phishing, could allow fraudsters to commit financial fraud, further eroding consumer trust and potentially leading to additional losses [unspecified source].

The market has also reacted negatively to the breach. SK Telecom has suffered a significant decline in market capitalization, with a reported loss of 923.6 billion won ($643 million) [4]. The company's shares have also seen a notable downturn, reflecting the market's apprehension over the breach and its potential long-term consequences [4].

[1] SK Telecom could lose up to $5 billion if it waives termination fees, CEO says[2] SK Telecom alerts customers to remain vigilant to possible smishing attacks[3] SK Telecom appeals against waiving early termination fees, predicts losses of 'several trillion won'[4] SK Group Chairman Chey Tae-won bows in apology during press briefing[5] 'Potential additional damage' from SK Telecom's subscriber exodus may top 5 trillion won: Source[unspecified source] Reuters, May 14, 2023

  1. The government, in a bid to curb the financial losses caused by SK Telecom's massive subscriber exodus, is considering measures to support the telecom industry financially.
  2. In response to the international uproar over the data breach, the government has been vigilant in monitoring the situation and is making efforts to reinforce data security regulations across the industry.
  3. Amidst the travel rush and subscriber drain in the telecom industry, the finance ministry has announced a temporary waiver of fees for travelers switching their SIM cards at Incheon International Airport.
  4. The international finance community has expressed concerns about the potential ripple effects of the subscriber exodus on South Korea's overall economic growth and stability.
  5. The travel industry, with a surge in customers due to the SIM card change rush at Incheon Airport, is experiencing a boom in business despite the ongoing difficulties in the telecom sector.
  6. To prevent further damage and regain consumer trust, SK Telecom has pledged to work closely with the international community, adhering to global standards of data security in the telecom industry.

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