[비즈한국] Following the SK Telecom017670 hacking incident, as movements for class-action lawsuits among subscribers are emerging, dispute mediation procedures through the Personal Information Protection Commission and the Korea Consumer Agency are also expected to shift into full gear. Given the significant burden of proof regarding the causal link of corporate negligence and subscriber damages, this litigation is expected to face complex legal battles before any actual compensation is reached. While the dispute mediation method, which emphasizes speed, is being discussed as an alternative, its limitations lie in the lack of legal enforceability due to the nature of a system based on mutual agreement and the relatively smaller scale of compensation.
11 Law Firms Recruiting for Class-Action Lawsuits with 'Nearly 200,000' Participants
Participation in class-action lawsuits by SK Telecom subscribers is showing an expanding trend. According to the legal community, more than 10 law firms are officially recruiting participants for compensation claims related to the SK Telecom USIM information leak. These include Ro-Jibsa, which started 10 days after the hacking incident on the 28th of last month, followed by Daegun (140,000 members, the highest number of inquiries), Daeryun (10,000), Ganada, The H, Sha, Geobugi, and Logos. Law firms like LawFeed (10,000), Nova, and Hwaeum are also preparing group lawsuits.
Daegun, which is proceeding with the lawsuit for free, has gathered over 140,000 participants since the 29th of last month. Regarding the litigation method, which requires no upfront fees, Daegun explained, "It is intended to prioritize victim protection and support numerous victims in restoring their rights without financial burden."
Daeryun, following its first criminal complaint against SK Telecom, including CEO Ryu Young-sang, plans to file a compensation lawsuit this week on behalf of approximately 1,000 users. After filing the first complaint for those whose documents have been collected, they will continue with a second round of recruitment. The initial filing fee for a civil lawsuit is 110,000 KRW, and 330,000 KRW for a criminal one.
On the 1st, Daeryun filed a criminal complaint against CEO Ryu and the security head with the police on charges of professional malpractice and obstruction of business by deception. Kim Gook-in, CEO of Daeryun, held a press conference at the firm's office in Yeongdeungpo-gu, Seoul, on the 22nd, stating, "SK Telecom has still not sufficiently clarified the scale or circumstances of the damage." He added, "There are indications of exposure to hacking for a long period, and realistic inconveniences have emerged, such as having to set aside one's livelihood to visit a retail store to replace a USIM card."
Ro-Jibsa handled the group lawsuit filed by three subscribers at the end of last month. They plan to gather more participants through additional recruitment. Lee Jung-yeop, the lead attorney at Ro-Jibsa, emphasized the necessity of the suit, stating, "Even if we view (the data leak) as a potential risk, it is a problem we cannot just watch. Isn't there no information more sensitive than this? If we let this pass by vaguely, there will be no way to sanction information security issues that may occur in other companies, including other telecommunications firms."
Most law firms pursuing class-action lawsuits have set the participation fee at 10,000 to 30,000 KRW, with a separate contingency fee of around 10%. While estimates for compensation vary by firm, some suggest a maximum of 1 million KRW. One law firm stated, "It depends on how the actual case proceeds, including the opponent's response, but we anticipate 200,000 KRW to 1 million KRW in consolation money. We intend to start with a claim of 300,000 to 500,000 KRW and expand the claim amount based on the establishment of specific facts and emergence of evidence during the process."
Dispute Mediation via Privacy Commission and Consumer Agency Intensifies
As of the 26th, the number of subscribers in the SK Telecom class-action lawsuit Naver cafe has exceeded 91,000. This is interpreted as a result of the expansion of compensation demands as the government-private joint investigation team revealed that the hacking began three years ago and pointed out the overall deficiencies in SK Telecom's security system. With the confirmation that virtually all subscribers' USIM information was leaked from SK Telecom's servers, the presumption that all subscribers of SK Telecom and its budget phone subsidiaries are victims of the leak is becoming a reality.
An increasing number of users are also considering relief through government agencies. On the 13th, the law firm Lee&Kong filed for collective dispute mediation on behalf of 100 victims to the Personal Information Dispute Mediation Committee. This is the first such case related to this incident. The personal information dispute mediation system aims to resolve information-related disputes outside of litigation quickly, and it is handled by the Dispute Mediation Committee, a quasi-judicial body.
Individual participation is also notable. According to data received from the Personal Information Protection Commission by Representative Yang Bu-nam of the Democratic Party of Korea, 338 people had applied for dispute mediation related to the SK Telecom hacking as of the 21st of this month. In addition to Lee&Kong's collective mediation, 238 individuals have filed 276 separate claims.
Under the Personal Information Protection Act, collective dispute mediation is a system designed to provide quick and amicable relief for victims of personal information infringement as an alternative to time-consuming litigation. The need for rapid relief is emphasized in that damages from personal information infringement spread quickly and are difficult to restore; there is a view that this could reach a conclusion faster than litigation, which is expected to take at least 2-3 years until a ruling.
The Dispute Mediation Committee, upon receiving an application for collective mediation, must announce the commencement of the process on its website and process it within 60 days from the day after the announcement ends. The law firm Lee&Kong explained, "We have quickly filed the first collective dispute mediation application for victims among the SKT hacking victims who agreed to pursue rights restoration through this mediation, and we plan to accept additional filings or participation requests in the future."
The outcome of collective mediation through the Korea Consumer Agency’s Consumer Dispute Mediation Committee is also drawing attention. This case is being handled by attorney Lee Chul-woo, who successfully mediated the 'MapleStory Probabilistic Items' case involving Nexon. At the time, the Consumer Agency recommended that Nexon provide a total of 21.9 billion KRW in compensation to 800,000 users, and the company accepted it, concluding the relief process. The current application includes requirements such as 300,000 KRW in damages per person for the information leak and the waiver of penalties when switching to other telecommunications companies.
If the business accepts the mediation plan, unlike a lawsuit, the same relief is provided even to parties who did not directly participate in the mediation application, but the relatively smaller scale of compensation is a disadvantage for users. Another limitation is that since it lacks legal enforceability, the mediation can fall through if the company rejects it.
The law firm Lee&Kong stated, "If SKT does not accept the collective dispute mediation plan from the Personal Information Dispute Mediation Committee in the future, or if the compensation scale in the plan is small, we plan to respond by filing a damages lawsuit against the company to ensure reasonable compensation for personal information infringement damages."
Attorney Lee Chul-woo said, "In the case of the Consumer Agency's collective dispute mediation, the compensation per person may not be large, but if successful, compensation is provided to all SK Telecom users. It is intended to prepare a compensation plan that applies to everyone without upfront fees or contingency fees." He added, "If the mediation fails, the Consumer Agency can support the lawsuit for applicants using its budget. Since the Consumer Dispute Mediation Committee is a larger institution, we expect it to be able to present a more powerful mediation plan."