More than 30,000 customers of KT Corp, the second-largest mobile carrier in South Korea, have canceled their subscriptions. This action followed the telecom company’s decision to waive contract termination penalties due to a significant data breach incident. Within a short period from Wednesday to Friday, 31,634 KT users switched to other carriers. Notably, 18,720 subscribers, over 70 percent of the total, opted for SK Telecom Co., while around 7,200 users moved to LG Uplus Corp, as reported by Yonhap news agency.
Industry experts attribute the substantial migration to SK Telecom’s subscriber acquisition strategies. SK Telecom has been reinstating membership benefits for customers who had previously left the company after a hacking incident last year. This move has encouraged former users who switched to KT to return to SK Telecom.
In response to the situation, the CEO of KT Corp has called for increased efforts from employees to rebuild customer trust and enhance vigilance against potential cyber risks in all aspects of the telecom business. Chief Executive Officer Kim Young-shub emphasized the need for heightened security measures across various operational areas, not just limited to traditional IT domains or specific departments. This call to action follows a major data breach incident in September that resulted in unauthorized micropayments.
Kim urged employees to unite in restoring customer confidence while outlining the company’s future growth strategy centered on artificial intelligence (AI). KT aims to prioritize the enhancement of its AI transformation capabilities to establish itself as a prominent global AI partner. The CEO emphasized the importance of continuous improvement in AI transformation capabilities, bold innovation, and embracing challenges to sustain growth as a premier AI transformation partner recognized by customers and the market.
