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SKT Announces 'Free USIM Replacement' After Hacking, but Faces "Immediate Shortages"

This article was automatically translated by AI. There may be errors compared to the original Korean article.  Read original in Korean →

[비즈한국] SK Telecom017670, which suffered a customer USIM (Universal Subscriber Identity Module) data breach, is offering free USIM replacements to all customers. Following concerns over potential illegal cloning, the company is attempting to contain the situation with additional measures, following the introduction of its 'USIM Protection Service.' Ryu Young-sang, CEO of SK Telecom, bowed his head on the 25th, stating, "We will implement additional measures to allow any customer who wishes to replace their USIM card free of charge."

However, prospects suggest that confusion may arise in the early stages of implementation depending on supply conditions at individual stores and the number of people waiting. Even before the announcement of the free replacement policy, some stores had already run out of stock, leading to situations where even customers willing to pay for replacements out-of-pocket were turned away. Recognizing that demand for replacements could spike, SK Telecom plans to provide services sequentially through appointments when visiting stores.

SK Telecom CEO Ryu Young-sang and executives apologizing on the 25th following the customer USIM data breach. From left: Lee Jong-hoon, Head of Infra Strategy Division; Hong Seung-tae, Head of Customer Value Innovation Office; CEO Ryu Young-sang; Bae Byung-chan, Head of MNO AT Division; and Yoon Jae-woong, Head of Marketing Strategy Division. Photo = Provided by SK Telecom
SK Telecom CEO Ryu Young-sang and executives apologizing on the 25th following the customer USIM data breach. From left: Lee Jong-hoon, Head of Infra Strategy Division; Hong Seung-tae, Head of Customer Value Innovation Office; CEO Ryu Young-sang; Bae Byung-chan, Head of MNO AT Division; and Yoon Jae-woong, Head of Marketing Strategy Division. Photo = Provided by SK Telecom

“Sold Out Again”: Some Direct-Managed Stores to Resume Replacement Service on the 28th

An SK Telecom PS&M direct-managed store in Jung-gu, Seoul, has been turning away customers visiting to replace their USIMs for several days. While stock arrives daily, it falls far short of demand. USIMs that arrive during the day are sold out by lunchtime. On the afternoon of the 24th, at 6:00 PM, a white-collar worker named A (32) visited the store right after work but was told that 100 units would arrive the next morning and to visit again then. A said, "When I asked if it would be possible tomorrow, they said it was hard to guarantee. I have many financial apps on my phone and felt anxious, so I wanted to pay to replace it quickly, but having to visit again is a hassle."

This store, which opens at 10:00 AM, saw its new stock exhausted by around noon on the 25th. It appears that demand for replacements became more concentrated on this day as SK Telecom announced its policy to strengthen customer information protection measures, including free USIM replacements. SK Telecom has also decided to refund costs to customers who replaced their USIMs at their own expense.

Stores like this one that receive even small amounts of stock daily are in a relatively better situation. Some stores are expected to resume replacement services starting on the 28th, when the free measure officially begins. As of 1:00 PM on the 25th, three PS&M stores located in Mapo-gu were effectively out of all stock.

While customers have expressed frustration over the information leak following the massive hacking incident and SK Telecom's response, frontline stores have had little choice but to struggle, as it was difficult to clearly communicate specific follow-up measures or the status of free USIM replacements. A store in Mapo-gu explained, "We have a very small amount of stock left, but we have to provide it to customers who visited earlier," adding, "You should be able to get a replacement if you visit at opening time on the first day of the free service."

SK Telecom plans to put all its efforts into USIM supply and establishing an appointment system over the weekend. SK Telecom Tower, Jung-gu, Seoul. Photo = Reporter Im Jun-seon
SK Telecom plans to put all its efforts into USIM supply and establishing an appointment system over the weekend. SK Telecom Tower, Jung-gu, Seoul. Photo = Reporter Im Jun-seon

SK Telecom plans to devote its full efforts to securing stock and establishing an appointment system over the weekend. An SK Telecom official said, "Each store has a different level of stock. In addition to existing warehouse holdings, we will sequentially supply items secured from manufacturers according to our supply plan," and added, "We plan to implement measures without setbacks by building an appointment computer system and conducting training for distribution networks."

Regarding concerns that the replacement timing could be delayed if queues occur, the official stated, "The USIM Protection Service can block all attempts to change devices using a device other than my own handset and USIM, or a cloned USIM. The FDS (Fraud Detection System) monitored by the central system is also a powerful service that accurately blocks problematic situations."

'Replacing All Customer USIMs' Is No 'Easy Task'

A week after recognizing the signs of hacking, SK Telecom announced the free USIM replacement measure alongside CEO Ryu Young-sang's public apology. This follows measures such as encouraging subscriptions to the USIM Protection Service (which blocks the use of cloned or stolen USIM information to connect to communication networks via other devices) and upgrading the criteria for blocking abnormal authentication attempts (FDS). While not a specific compensation measure for the information breach, it is considered significant as the first move premised on the execution of massive costs.

The number of mobile lines at SK Telecom is approximately 22.73 million. If you include budget phone (MVNO) lines that use SK Telecom's network (1.87 million), the cost of replacing USIMs (7,700 won per unit) could reach up to 189.4 billion won. This figure is based on simple calculations, and considering the USIM cost price is known to be around 3,000 won and that the service is provided only to customers who request it, the actual funding required is expected to be lower than this.

SK Telecom Tower, Jung-gu, Seoul. Photo = Reporter Im Jun-seon
SK Telecom Tower, Jung-gu, Seoul. Photo = Reporter Im Jun-seon

CEO Ryu Young-sang apologized repeatedly at a 'Briefing on Strengthening Customer Information Protection Measures' held at the headquarters in Jung-gu, Seoul, on the 25th, saying, "As a national key telecommunications operator with the duty to protect customers' valuable information, I, along with all SK Telecom employees, feel deep regret and responsibility for this incident."

Previously, on the 22nd, SK Telecom confirmed that it had verified signs that some information related to user USIMs was leaked by malicious code from a hacker around 11:40 PM on the 19th. The leaked information is a unique identification number that identifies the USIM for each subscriber. As concerns emerged that illegal cloned phones could be created with the leaked USIM information, opinions arose among users that they should replace their old USIMs with new ones to eliminate sources of anxiety.

Yeom Heung-yeol, professor emeritus of the Department of Information Security at Soonchunhyang University, pointed out, "I evaluate this as having brought out a fundamental measure from a technical perspective," and added, "Procedures such as identity verification must be carried out according to principles, and appropriate and meticulous handling is needed that also considers the information gap in rural areas and among the elderly."

This article was automatically translated by AI. There may be errors compared to the original Korean article.
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