SKT subscriber losses are climbing rapidly following a major cyberattack that exposed user data and triggered mass cancellations. Despite offering penalty-free exits and compensation, South Korea’s top telecom company continues to bleed customers.
Since April’s data breach, over 800,000 SKT users have left. On one day alone—last Saturday—nearly 4,000 subscribers switched carriers. KT and LG Uplus each gained more than 1,900 new users that day.
Government officials traced the breach back to 2021. They blamed SKT’s negligence for allowing the damage to escalate. Hackers compromised nearly 10 gigabytes of sensitive customer data.
To slow defections, SKT waived early termination penalties through July 14. Customers affected by the April 19 breach can cancel contracts without fees. Yet thousands are choosing to leave anyway.
CEO Ryu Young-sang said the company chose trust over short-term profits. At a May hearing, he warned up to 5 million users might cancel. He projected potential losses at 7 trillion won over three years.
To contain the fallout, SKT offered bill discounts for August and 50 GB of free monthly data through year-end. Despite these efforts, subscriber losses keep mounting.
SKT recently slashed its 2024 sales forecast. Executives now expect 17 trillion won, down from 17.8 trillion, citing losses from discounts and churn.
Meanwhile, rivals are stepping up their game. KT and LG Uplus launched aggressive campaigns to win over SKT defectors. Several franchise stores allegedly used unethical tactics to scare customers into switching.
One store reportedly warned, “Your child’s number could be exposed next if you stay with SKT.” While officials confirmed no secondary damage, these fear-based pitches continue to influence consumer decisions.
Samsung’s launch of its new foldable phones this week adds further pressure. A soon-to-be-repealed subsidy cap law may also increase carrier competition.
Unless SKT can rebuild user trust fast, its subscriber losses will likely worsen in the coming weeks.
