SK Telecom (017670.KS) has rejected a mediation proposal from the Korea Consumer Agency's Consumer Dispute Mediation Committee that would have required the company to pay 100,000 won per customer affected by a personal data breach.
According to telecommunications industry sources on Friday, SK Telecom submitted a written notice to the Consumer Dispute Mediation Committee declining the proposal. As a result, the mediation will be terminated without agreement. Applicants may file separate civil lawsuits in court to continue the process.
"We thoroughly reviewed the committee's decision, but considered our proactive voluntary compensation efforts and security enhancement measures already implemented, as well as the significant ripple effects that accepting the proposal would have," SK Telecom said. "We ask for understanding that we had no choice but to decline the proposal, and we will continue to strengthen measures to restore customer trust and prevent additional damage."
The Consumer Dispute Mediation Committee had previously ruled that consumer damage from SK Telecom's personal data breach was confirmed, and ordered the company to provide 58 mediation applicants with 50,000 won in telecommunications fee discounts and 50,000 T Plus points that can be used like cash at affiliated merchants.
If SK Telecom had accepted the proposal, the same compensation would have been extended to other victims who did not participate in the mediation process, with total compensation estimated to reach approximately 2.3 trillion won ($1.7 billion).
Meanwhile, SK Telecom also filed an administrative lawsuit in court on the 19th, challenging the 134.79 billion won fine imposed by the Personal Information Protection Commission last August for the data breach.
