South Korea’s #1 mobile carrier, SK Telecom, dropped from 11th to 40th position in the Q2 BrandStock Top Index after suffering a large-scale SIM-data breach that exposed sensitive information from its entire 25 million–user base
The breach, disclosed in April, forced SK Telecom to temporarily suspend new subscriber activations pending a full replacement of USIM cards. The pause lasted nearly two months, severely impacting sales at retail partners. Though SK has proposed paying 150,000 KRW (~US $110) per new signup and an additional 20,000 KRW for device upgrades, many shop owners argue the compensation fails to cover broader business losses.
Since the activation halt began on May 5 and ended June 24, approximately 380,000 subscribers have migrated to competitors, with total customer losses from April’s breach reaching around 620,000.
SK Telecom has announced a forthcoming user-focused compensation package, which is expected to include a 10 % discount over six months on subscription fees and a 20,000 KRW rebate on international roaming services.
What This Means:
- Brand damage: A dramatic drop in SKT’s brand ranking reflects deep trust issues.
- Retail blow: Independent stores reliant on new signups are feeling the strain.
- Customer unrest: High churn rates indicate users are jumping ship.
- Crisis response: SK aims to regain consumers with planned discounts and loyalty incentives.
