Telecom CEO apologizes, admits SIM hacking incident as most severe in telecom sector's chronicles
Yoo Young-sang, the CEO of SK Telecom, had a chat with the bigwigs at the National Assembly's Science, ICT, Broadcasting and Communications Committee on April 30. [JOONGANG ILBO]
midst a heap of heat, with the company allegedly falling victim to a cyberattack, compromising SIM-related data of a whopping 23 million subscribers, and triggering fears of phone cloning and financial fraud. [2nd article, 4th article] As a result, over 34,000 subscribers trooped off to compete carriers in a single day, causing a $643 million drop in the company's market capitalization. [2nd article]
With the government keeping a close eye on the company's response to the breach, [3rd article] and authorities reviewing its handling of the situation, [3rd article] Yoo Young-sang found himself square in the hot seat. Nonetheless, he was ready to take the heat and face the music.
Apart from the obvious challenges, the company was also grappling with a shortage of replacement SIM cards, initially holding just 1 million, but aiming to secure an additional 5 million by the end of May 2025. [1st article] Customers, especially vulnerable groups like the elderly, are facing delays in getting these replacement cards. [4th article]
While the content of the discussions during the National Assembly committee proceedings isn't explicitly stated, it's safe to assume they centered around accountability, cybersecurity measures, and customer protection. However, the specific remarks made by Yoo Young-sang weren't documented in the provided materials.
- Yoo Young-sang, the CEO of SK Telecom, proposed implementing stronger telecom technology to prevent future cyberattacks, as the industry and business faces increased scrutiny following the data breach.
- In light of the travel restrictions imposed due to the ongoing pandemic, Yoo Young-sang suggested exploring digital solutions to facilitate remote captioning for the legislative proceedings, ensuring transparency and accessibility.
- Amid the controversy, Yoo Young-sang called for the JOONGANG ILBO, a renowned media outlet, to collaborate on news reporting, aiming to inform and reassure subscribers about the company's committment to business ethics and customer care.
- To address the telecom crisis and restore customer trust, Yoo Young-sang also advocated for partnerships with other industry players, especially in the travel sector, to offer compensation and incentives for delayed services during this difficult time.
