SK Telecom appeals against waiving early termination fees, predicts losses of 'several trillion won'
Published: 08 May. 2025, 12:13
Updated: 08 May. 2025, 12:19
![Travelers at Incheon International Airport's Terminal 1 wait in line to replace their SK Telecom SIM cards on May 4, 2025. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/05/08/18a954c7-a571-44b4-85c8-c9e69bf4e582.jpg)
Travelers at Incheon International Airport's Terminal 1 wait in line to replace their SK Telecom SIM cards on May 4, 2025. [YONHAP]
Representatives from SK Telecom visited the National Assembly to appeal against waiving early termination fees for customers switching to other carriers in the wake of its recent hacking incident, warning that such a move could cause trillions of won in damages and threaten the company’s viability.
SK Telecom representatives met with lawmakers at the National Assembly in Yeouido, western Seoul, on Wednesday and distributed a statement appealing against the waiver, according to political sources.
“We have entered emergency management mode to swiftly resolve the crisis and are sequentially implementing measures to protect users,” the company said.
However, SK Telecom reiterated its stance that it would be difficult to exempt subscribers from early termination fees.
“With new subscriptions currently suspended indefinitely as a voluntary measure, waiving early termination fees would inflict irreversible damage on the company,” SK Telecom said. “There is a high likelihood that customers with large fees will be the first to leave, and if early termination fees are waived, we estimate that millions of line cancellations could result in losses of several trillion won.”
“As a key telecommunications service provider responsible for national infrastructure, we must prioritize management stability to ensure uninterrupted service, national security and the development of ICT,” it continued. “Any decision that could have such a significant impact on the company requires a resolution by the board of directors.”
![Travelers line up to change their SIM cards at the SK Telecom roaming center in the departure hall of Terminal 1 at Incheon International Airport in Incheon on May 4. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2025/05/08/4aa19769-42b7-41bf-8d29-1e5ab9ad7769.jpg)
Travelers line up to change their SIM cards at the SK Telecom roaming center in the departure hall of Terminal 1 at Incheon International Airport in Incheon on May 4. [YONHAP]
The telecom giant also expressed concern that such a waiver could trigger market chaos from indiscriminate number switching.
“Since the breach, there have been no confirmed cases of damage from illegal USIM cloning,” it noted. “If early termination fees are waived without an objective basis, it could set a precedent for people to unilaterally terminate contracts or demand compensation, creating widespread social confusion.”
“If early termination fees are waived across the board, even customers with no service issues might jump on the bandwagon, creating turmoil in the mobile number portability market,” the company said. “This could lead to extreme disorder throughout the telecommunications market.”
The Science, ICT, Broadcasting and Communications Committee of the National Assembly is scheduled to hold a hearing on Thursday to discuss the hacking incident. SK Telecom CEO Ryu Young-sang is expected to attend and answer questions from lawmakers.
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY JEONG JAE-HONG [[email protected]]
with the Korea JoongAng Daily
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