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Mediation committee proposes SK Telecom pay $210 to each victim of hacking incident

Published: 04 Nov. 2025, 15:26 Updated: 04 Nov. 2025, 18:07

A passerby speaks on the phone outside a SK Telecom store in central Seoul on Aug. 28, the day the company was fined over a massive leak of user USIM data. [NEWS1]

SK Telecom, which was hit with a record fine over a massive personal data breach, has been advised to pay 300,000 won ($210) in damages to each victim, according to a mediation proposal issued by the Personal Information Dispute Mediation Committee (PIDMC).

The committee, which operates under the Personal Information Protection Commission (PIPC), announced on Tuesday that it had adopted the proposal during its 59th general meeting on Monday. The proposal includes compensation for victims and a recommendation that SK Telecom strengthen its personal data protection measures.

The mediation applies to 3,998 people — three collective cases involving 3,267 people and 731 individual requests — who have filed complaints since April.

“The committee heard from representatives of the three collective cases and from SK Telecom,” PIPC said. “We focused on reviewing the applicants’ demands for compensation, policy improvements, cessation of violations and restoration measures.”

According to an earlier investigation by the committee, SK Telecom leaked 25 types of personal data belonging to all 23.2 million users of its LTE and 5G services. The leaked data included mobile phone numbers, subscriber identification numbers (USIM) and USIM authentication keys.

“The victims experienced anxiety over possible misuse of their data [...] as well as confusion and inconvenience during the USIM replacement process,” PIPC stated. “We recognized the psychological damage and set the compensation accordingly.”

Each of the 3,998 applicants is to receive 300,000 won for a total of around 1.2 billion won.

SK Telecom CEO Ryu Young-sang bows in apology during a press conference on the hacking incident and the company’s response, held at the SKT Tower in Jung District, central Seoul, in July. [NEWS1]

The PIPC also made recommendations to prevent a recurrence. SK Telecom was advised to develop and implement comprehensive data protection measures, including internal management plans, and enhance security for its personal information processing systems.

However, the committee did not recommend restorative measures, citing the difficulty of fully reversing the damages from a data breach of this nature, despite the company blocking the breach path and offering USIM replacements.

The PIDMC is a nonlitigious system designed to provide swift relief in privacy-related disputes. If both the applicant and the company accept the mediation proposal, that decision holds the same legal weight as a civil court ruling.

The committee will notify SK Telecom and the applicants of the proposal and require confirmation of both of their acceptances within 15 days. If either party rejects it, the mediation is nullified, and the case is closed. The applicant must then seek compensation through a civil lawsuit.

“There is criticism over lack of enforceability,” said Lee Hoon-sik, the director of dispute mediation at the PIPC, “but the mediation success rate reached 78.5 percent of 806 cases last year. The process is highly effective in reaching fast settlements without going to court.”

The SK Telecom logo is seen at a retail branch in Seoul on Aug. 27. [YONHAP]

It remains uncertain whether SK Telecom will accept the proposal. However, if it does, additional victims may file for mediation. A PIPC official noted that while no statute of limitations is explicitly stated for mediation, it is typically interpreted in line with civil litigation: within 10 years of the incident or three years of discovering the damage.

If more victims file, SK Telecom could become liable for substantial additional compensation on top of the 134.8 billion won fine it was already ordered to pay by the PIPC in August.

“We carefully reviewed the claims and arguments of both parties and crafted this proposal accordingly,” said Woo Ji-sook, the acting chair of the mediation committee. “We hope the mediation is accepted and the victims receive meaningful relief.”

“We regret that our efforts to manage the situation and provide proactive, voluntary compensation were not fully reflected,” said SK Telecom. “We will carefully review the proposal before making a final decision.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY HAN EUN-HWA [[email protected]]