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KT's Data Breach Fallout: Over 30,000 Users Flee in Just 3 Days

A major data breach has triggered a significant customer exodus for KT Corp. More than 30,000 users switched to competitors in just three days once contract termination penalties were waived. The company's CEO is now calling for a fundamental shift in security awareness across all departments. Looking ahead, KT aims to rebuild its reputation and drive growth by becoming a leader in artificial intelligence.

Key Points: 30,000 KT Users Switch Carriers After Data Breach Penalty Waiver

  • Over 31,600 KT users switched carriers after penalties were waived post-data breach
  • About 70% of departing customers migrated directly to rival SK Telecom
  • KT's CEO warned that all company operations are now potential cyberattack targets
  • The company plans to focus its long-term recovery strategy on AI transformation
2 min read

Over 30,000 KT users switch mobile carriers in 3 days after penalty waiver

Over 30,000 KT customers switched mobile carriers in three days after penalty waivers. CEO Kim Young-shub urges a company-wide security overhaul and focuses on AI growth.

"Not only traditional information technology (IT) domains or specific departments but every routine task we perform... is now a potential target for attacks and must be protected. - Kim Young-shub, KT CEO"

Seoul, Jan 3

More than 30,000 customers of KT Corp, the country's second-largest mobile carrier, canceled their subscriptions after the telecom company began waiving contract termination penalties following a major data breach incident, industry sources said on Saturday.

According to the sources, 31,634 KT users moved to other carriers between Wednesday and Friday. Of those, 18,720 subscribers, or more than 70 percent, switched to SK Telecom Co., while some 7,200 users moved to LG Uplus Corp, reports Yonhap news agency.

Industry watchers attributed the strong migration to SK Telecom to the company's subscriber acquisition policies.

SK Telecom has been restoring membership benefits for customers who previously left the company following its own hacking incident last year, prompting former users who moved to KT to return.

Meanwhile, the head of KT Corp has urged employees to step up efforts to restore customer trust and remain vigilant against potential cyber risks across all areas of the telecom company.

"Not only traditional information technology (IT) domains or specific departments but every routine task we perform -- from networking and marketing to customer service -- is now a potential target for attacks and must be protected," Chief Executive Officer (CEO) Kim Young-shub said in his New Year's message, referring to a major data breach reported in September that led to a series of unauthorised micropayments.

"Without this shift in awareness, we cannot defend against increasingly sophisticated security threats," he said.

Kim called on employees to unite in restoring customer trust while outlining the company's longer-term growth strategy centred on artificial intelligence (AI).

He said KT will prioritise strengthening its AI transformation capabilities and aims to position itself as a leading global AI partner.

"If we continue to enhance our AI transformation capabilities and pursue bold innovation and challenges, we can sustain our growth as a premier AI transformation partner recognised by customers and the market," Kim said.

- IANS

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Reader Comments

R
Rohit P
Wow, 30,000 in 3 days! That's the power of consumer choice when penalties are removed. In India, we need more such pro-consumer policies. Porting charges are one thing, but sometimes the hidden costs and loyalty traps are worse. More power to the customers! 👍
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Aman W
The CEO's focus on AI is interesting, but it feels like putting the cart before the horse. First, secure the basic customer data! You can't talk about being a "global AI partner" when you can't protect your users' payment information. Fix the fundamentals first.
S
Sarah B
It's a good move to waive the penalties. That shows some accountability. In any service industry, retaining trust is everything. Once it's gone, it's very hard to get back, no matter how many "membership benefits" you restore later.
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Vikram M
The shift to SK Telecom shows customers are looking for stability. After a data breach, people want a provider they feel is secure. It's not just about tariffs or 5G speed anymore. Security is becoming the top priority, as it should be.
K
Kavya N
This is a wake-up call. "Unauthorised micropayments" is a scary phrase for any user. Telecom companies have access to so much of our digital lives. They must be held to the highest standard of security. Jai Hind, and protect our data!

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