**Summary**
KT experienced a significant subscriber departure following its penalty waiver, with 50,000 users leaving in just four days. Many ex-KT users chose SK Telecom, likely influenced by how the companies managed their respective crises. In efforts to recover lost subscribers, SK Telecom launched a program restoring length of membership and membership benefits to previous levels for returning customers. Meanwhile, KT rolled out a compensation plan worth 450 billion KRW. LG Uplus awaits investigation results before announcing their approach. This year, the main theme for the top three telecom companies is “restoring trust.”
**Subscriber Exodus after KT Penalty Waiver**
According to industry sources, KT saw a sharp exodus of 52,661 subscribers from December 31 through January 3, attributed to its penalty waiver policy. On January 3 alone, 21,027 users switched providers. Of the departing KT users, about 65% moved to SK Telecom. Analysis suggests that differences in how each telecom company handled privacy breaches influenced consumer decisions.
SK Telecom previously managed a USIM hacking incident by completing penalties and business halts, stabilizing the situation. In contrast, KT faced significant fallout due to unauthorized small payments resulting from last year’s privacy breach, and LG Uplus is embroiled in ongoing concerns over mishandled response to voice information leaks and internal system hacking.
SK Telecom aims to reclaim a 40% market share by drawing in ex-clients, offering a program to restore previous service levels. KT announced a 450 billion KRW compensation plan, including 100GB of data and OTT subscriptions valid for six months. LG Uplus awaits investigation outcomes before proceeding with compensation plans, with scrutiny from the Ministry of Science and ICT over alleged server disposal.
**Telecom Companies Focus on “Restoring Trust” to Avert Further Exodus**
As privacy breaches are seen as a key driver of the exodus, the top three telecoms are emphasizing “restoring trust” as a theme for the new year. This marks a shift from the previous focus on transitioning to AI enterprises.
SK Telecom is focusing on enhancing MNO competitiveness, stressing customer-centricity in their strategy. CEO Jeong Jae-heon highlighted customer-centered development in his New Year’s address. Similarly, KT identified information security as their priority, with CEO Kim Young-seok highlighting the importance of enterprise-wide security measures, reinforced by the launch of a “Information Security Innovation Task Force.”
LG Uplus also emphasizes “TRUST” as their new year’s focus, encouraging cooperation in tackling issues across network, security, quality, and service development areas.
**Contact Information for CBS NoCut News**
CBS NoCut News invites tips on corruption, unfair treatment, incidents, accidents, and inspirational stories. Contact through:
– Email: jebo@cbs.co.kr
– KakaoTalk: @노컷뉴스
– Website: https://url.kr/b71afn