As a result of the 'SK Telecom hacking incident,' subscriber churn has caused a surge in the usage of customer service centers and membership applications (apps) of KT and LG Uplus.
According to data analysis solution Mobile Index from iGAworks on the 15th, the weekly new installation count of the membership apps for KT and LG Uplus increased approximately 4 times and 2 times, respectively, following the 'SK Telecom hacking' incident. The membership apps are typically installed immediately after switching carriers (number portability) and are used as indicators of changes in new subscribers.
SK Telecom announced on the 22nd of last month that there were signs of subscriber identification module (USIM) information being stolen due to a hacking attack.
The weekly new installation count of the KT membership app recorded 8,779 cases from the 14th to the 20th of last month, prior to the hacking revelation. After that, it surged to 34,037 cases two weeks later and 33,126 cases three weeks later, nearly a fourfold increase. During this period, the new installation count for the LG Uplus membership app also increased from 7,937 cases to 17,274 cases, more than doubling. From the 5th to the 11th of this month, the new installation count has remained high at 10,862 cases.
The number of users accessing the customer service apps of KT and LG Uplus also surged during this period. The weekly active user (WAU) count for the KT customer service app (My KT) climbed from 2,294,555 before the SK Telecom hacking incident to 3,415,376 afterward, a 48.9% increase. LG Uplus (Your U+) also rose from 1,556,691 to 2,300,804, a 47.9% increase. KT and LG Uplus are offering a USIM protection service that can prevent 'USIM cloning' through their customer service apps.
In response to a recent surge in users of the USIM protection service developed and implemented by KT in March 2022, the company plans to apply this feature to overseas roaming subscribers this month. LG Uplus has also noted through a first-quarter earnings conference call on the 8th that they are 'already prepared' for roaming and automatic subscriptions related to the USIM protection service introduced in July 2024.
KT and LG Uplus are benefiting from increased new subscribers following the SK Telecom hacking incident. From the 22nd of last month to the 14th of this month, a total of 337,768 customers switched from SK Telecom to KT and LG Uplus. Among them, 189,379 moved to KT, and 148,389 transitioned to LG Uplus. During this period, SK Telecom lost a net of 295,252 subscribers (the number of total churners minus new subscribers). Since the 5th, SK Telecom has completely suspended new subscriber operations that include number portability at over 2,600 T World stores and T World online channels under the administrative guidance of the Ministry of Science and ICT.