LG Uplus has officially listed data breach incidents as one of the investment risk factors for the company.
According to the Financial Supervisory Service's electronic disclosure system on the 21st, LG Uplus made this disclosure when submitting a securities registration statement on the 16th. LG Uplus included "risks related to personal data breach and network stability" as one of the key investment risks in the securities registration statement.
"Matters related to security concerning personal data breaches and strengthening network stability not only result in investigations by relevant authorities and subsequent penalty impositions, but also generate civil and criminal liabilities such as compensation for affected customers depending on court decisions," LG Uplus explained. "This could negatively impact the company's reputation and brand image, increase ancillary costs related to personal data protection, and consequently have an adverse effect on our earnings."
LG Uplus has been under investigation by the Ministry of Science and ICT and law enforcement agencies after allegations emerged last year through U.S. security publication Phrack that internal server data had been leaked externally.