Seoul: KT Corp. announced it will waive cancellation fees for customers wishing to terminate their contracts after a significant data breach in September led to unauthorized micropayments.
According to Yonhap News Agency, the government disclosed findings from its investigation into KT's security breach, attributing the incident to inadequate management of femtocells, which are small base stations used in residential and business settings.
"KT takes responsibility for the incidents, and we will waive cancellation fees for customers who wish to terminate their mobile service contracts with KT," the company stated in a release. Customers can apply to unsubscribe from Wednesday through January 13, and this policy also applies to those who have canceled their subscriptions since September 1. The waiver will be provided as refunds, but new subscribers after September 1 are not eligible.
KT CEO Kim Young-shub expressed regret over the breach, emphasizing the company's commitment to addressing the damage and inconvenience caused. To compensate, KT will offer 100 gigabytes of free monthly data for six months starting in January, alongside additional discounts at cafes and movie theaters.
Furthermore, KT will introduce a two-year insurance program covering losses from voice phishing or scams, automatically enrolling users aged 65 and older. The company plans to fortify its data management system through an information security task force, enhancing security protocols and accountability.
The Ministry of Science and ICT reported that the breach resulted in unauthorized micropayments totaling 243 million won (US$169,000), impacting 368 users. Additionally, 22,227 users had their mobile numbers, IMSI, and IMEI numbers compromised. The government noted KT's failure to meet contractual obligations, allowing users to request fee waivers when unsubscribing.