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KT Loses 50,000+ Users in 4 Days After Data Breach Penalty Waiver

More than 50,000 KT customers switched mobile carriers in just four days after the company waived early termination penalties following a major data breach. The majority of defectors moved to rival SK Telecom, which has aggressively courted affected users. In response, KT's CEO has called for a company-wide shift in security awareness, stating that every business function is now a potential target for cyber attacks. Simultaneously, he outlined a growth strategy focused on positioning KT as a leading global AI partner to rebuild customer trust and ensure future growth.

Key Points: KT Loses 50,000+ Users After Data Breach

  • 52,661 users switched carriers
  • 70% moved to SK Telecom
  • CEO pushes AI transformation
  • Security awareness shift demanded
2 min read

Over 50,000 KT users switch mobile carriers in 4 days after penalty waiver

Over 50,000 KT customers switched carriers in 4 days after penalty waivers. CEO urges AI focus and security overhaul to rebuild trust.

"Every routine task... is now a potential target for attacks and must be protected. - CEO Kim Young-shub"

Seoul, Jan 4

More than 50,000 customers of KT Corp., South Korea's second-largest mobile carrier, have canceled their subscriptions after the telecom company began waiving early termination penalties following a major data breach, industry sources said.

According to the sources, 52,661 KT users moved to rival carriers between Wednesday and Saturday. More than 70 percent of them switched to SK Telecom Co, reports Yonhap news agency.

On Saturday alone, 21,027 people left KT, including 13,616 who opted for SK Telecom, the sources said.

SK Telecom, the No. 1 mobile carrier, has been moving swiftly to attract KT customers, including those who previously left the company following its own hacking incident last year, prompting some former users to return.

Meanwhile, the head of KT Corp on Friday 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 micro-payments.

"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

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Rohit P
Waiving penalties is the least they could do! In India, we face similar issues with telecom companies holding our data. If a major breach happened here, I hope TRAI would enforce similar consumer-friendly measures. The exodus shows customers value security over loyalty points.
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Aman W
Interesting to see SK Telecom attracting customers even after their own past incident. It seems in a competitive market, the least worst option wins sometimes. The CEO talking about AI transformation while the house is on fire feels a bit disconnected. Fix the basics first, sir!
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Sarah B
Over 50k in 4 days is massive. It highlights how mobile number portability empowers consumers. We've seen the benefits of MNP in India too. Competition is the best regulator.
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Vikram M
The focus should be on preventing breaches, not just managing the fallout. "Unauthorised micro-payments" sounds scary. In our digital India push, cybersecurity infrastructure needs to be rock solid. A data breach here could be devastating for millions.
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Nikhil C
Respectfully, the CEO's message feels like corporate jargon. "AI transformation partner" is a fancy goal, but right now customers just want to know their personal data and money are safe. That trust is earned through action, not AI strategy presentations.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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