**34,000 SKT Subscribers Leave in One Day… Increasing Exodus**
**KT & LG Uplus Increase Subsidies Amid Competition for Subscribers;**
**”Technical Issues with Number Portability from SKT”… SKT Denies Claim**
Due to a hacking incident, SK Telecom (SKT) faces a major crisis as its subscriber exodus becomes unmanageable. Some speculate that if this trend continues, SKT could lose its top position, leading to a seismic shift in the industry.
On the 28th, as per industry reports, SKT’s free USIM replacement service started, and approximately 34,132 users switched to other carriers like KT and LG Uplus. About 60% moved to KT, and 40% to LG Uplus.
As SKT’s subscriber exodus intensifies, second and third-ranked carriers, KT and LG Uplus, are ramping up subsidies to attract new customers. On this day, some dealers advertised that switching to KT would allow customers to purchase the latest Samsung Galaxy S25 basic model for free and receive a cashback of 250,000 KRW. Switching to LG Uplus offered a cashback of 330,000 KRW for the same model.
This represents a significant increase in cashback amounts compared to April 21, before the SKT hacking incident was reported, where the cashback was 140,000 KRW to switch to KT and 120,000 KRW to LG Uplus under the same conditions. Even the high-end Galaxy S25 Ultra, which was 430,000 KRW on April 21 to switch to KT and LG Uplus, is now 190,000 KRW for LG Uplus.
SK Telecom is also increasing its subsidies to counteract the subscriber loss. On the previous day, while 34,132 subscribers left SKT, 8,729 new subscribers joined, resulting in a net loss of 25,403 users.
In the fierce competition for subscribers, there were suspicions that SKT might have blocked number portability from SKT to KT and LG Uplus, as system issues occurred, but not vice versa. SKT dismissed this as a “routine, sporadic system issue.”
A different industry insider explained, “SKT dealers are continuously using operational systems, making it difficult to avoid overload.”
The industry foresees that ongoing subscriber loss could potentially compromise SKT’s leading status. A source noted, “Seeing 200 to 300 times the usual number of subscribers leave on the 28th alone suggests a possible change in the top carrier position.”
The smartphone manufacturing industry anticipates heightened competition if the subscriber numbers between the three major carriers become similar, potentially increasing subsidies and the demand for phone upgrades.
Upcoming holidays early next month and the July repeal of the Mobile Device Distribution Improvement Act could further deteriorate SKT’s situation. Presently, SKT recommends the USIM protection service, which cannot be used during roaming, causing inconvenience for travelers planning overseas trips, possibly prompting them to switch carriers.
SK Telecom is working on enabling concurrent use of the USIM protection service with roaming by mid-May. Moreover, with the July repeal of the act that limits subsidies, KT and LG Uplus may engage in aggressive marketing to attract subscribers, potentially increasing SKT’s subscriber loss.
Despite this, it is projected that SKT, with approximately 23 million subscribers as of late February compared to KT’s 13.36 million and LG Uplus’s 10.94 million, will not easily relinquish its top position.
Meanwhile, SK Telecom users are demanding waiver on early termination fees for switching to other carriers, despite the decision for free USIM replacement. Former Korean Medical Association President Choi Moon-sik also announced filing a charge against SK Telecom CEO Yoo Young-sang for breach of trust under the Criminal Act.
Nevertheless, as the Ministry of Science and ICT confirmed there was no leakage of mobile device identification numbers (IMEI) and that SIM swapping could be prevented through the USIM protection service, a cautious perspective is also present in observing the situation.