“The number of customers visiting the store increased by 4 to 5 times compared to usual.”
On the afternoon of the 6th, an employee at an LG Uplus store in Seongdong-gu, Seoul, noted that since the recruitment for new subscriptions (including number porting) by SK Telecom was halted on the 5th, more people have been visiting the store. An employee at a KT store in Yeoksam-dong, Gangnam-gu, Seoul, also said, “The number of customers visiting the store surged by more than 4 times right after SK Telecom stopped its new subscription sales.”
The Ministry of Science and ICT instructed SK Telecom to fully suspend the recruitment of new subscriptions until the shortage of subscriber identification devices (USIM) is resolved on the 1st. According to the Korea Telecommunications Operators Association (KTOA) and the telecommunications industry, 26,795 SK Telecom subscribers switched to other carriers on the 5th and 6th. During the same period, KT gained 14,219 subscribers, while LG Uplus gained 12,666.
◇ “The penalty for number porting is a hindrance”… Many customers leave after consultations
Many SK Telecom subscribers consulting at KT and LG Uplus stores are unable to freely switch due to penalty issues. A salesperson at an LG Uplus store said, “Many customers consulted with us in advance, stating they would come to switch if SK Telecom’s penalty exemption is assured,” adding, “SK Telecom subscribers with a contract period of less than 6 months have switched.”
A KT store employee said, “I have seen many cases where customers could not switch to KT due to having more than 1 year left on their contracts,” adding, “Because of various family discount benefits, many families use SK Telecom together, and if SK Telecom announces penalty exemptions, it seems likely that they could attract more new subscriptions than now.”
SK Telecom acknowledged the hacking incident on the 18th of last month but has delayed the announcement regarding penalty exemptions for over a fortnight. To prevent damage from personal information leaks, SK Telecom began free USIM replacements on the 28th of last month, but as of the 7th of this month, only 1.07 million USIMs have been replaced, which is just 4.2% of the total 25 million subscribers (including budget phone users). By the end of this month, SK Telecom could secure an additional maximum of 5 million USIMs.
Chey Tae-won, chairman of SK Group, apologized on the 7th as the head of the group, but regarding the penalty exemption, he only provided a general response that it is “under review by the board.” A telecommunications industry insider pointed out, “While there is a provision in SK Telecom’s subscription terms that exempts penalties if the subscriber terminates due to the carrier's responsibility, criticism is growing that SK Telecom is dragging its feet.”
◇ There are no SK Telecom customers at newly permitted sales points
The stores where SK Telecom has stopped new subscriptions include direct stores (about 350) and franchises (2,250). Mobile sales points that operate for all three telecommunications companies still allow new subscriptions. However, since the sales halt began on the 5th, it has been difficult to find customers who subscribed to SK Telecom even at these sales points. This is because the additional support funds for the stores have significantly decreased alongside the standard support funds. In contrast, KT and LG Uplus have greatly increased their store additional support funds.
In the case of the Galaxy S25 (256GB), all three telecommunications companies offer a standard support fund of 500,000 won if subscribed to a 100,000 won plan, but the additional support funds offered by some sales points vary. A salesperson at a sales point in the Sindorim area of Seoul said, “After SK Telecom's sales halt, the additional support funds were drastically reduced to 200,000 won. In contrast, KT offers additional support funds in the 600,000 won range, and LG Uplus in the 800,000 won range,” adding, “It seems that SK Telecom has given up on attracting new subscriptions due to the shortage of USIM stock.” Another salesperson said, “I haven’t seen a single customer switch to SK Telecom in the two days of the 5th and 6th.”
◇ It’s been over ten days of no business, and there are sighs regarding the sales halt
Unlike direct stores, SK Telecom franchise owners are essentially independent business owners. If they cannot operate, they bear the losses themselves. Although free USIM replacements began on the 28th of last month, since the weekend on the 26th of last month, lines of customers for USIM replacements have been forming.
During the golden holiday period from the 1st to the 6th of this month, operations were disrupted due to USIM replacement tasks, and after the 5th, new subscriptions were completely blocked. An SK Telecom franchise owner in Gangnam-gu, Seoul, said, “Even as employees work frantically on the USIM replacement, we cannot offer extra bonuses,” adding, “Most importantly, I am worried because this month's revenue has plummeted.”
SK Telecom has not presented specifics on compensatory measures for distribution points unable to operate due to this hacking incident. A representative from SK Telecom responded, “We are considering compensation measures for stores that have halted new subscriptions.”