SK Telecom is providing incentives for activating embedded SIM (eSIM) cards at mobile phone retail stores. The company's previous focus on activating subscriber identity module (USIM) cards has temporarily shifted. Following the administrative guidance from the Ministry of Science and ICT, which limited new subscriptions at direct and authorized stores to secure a supply of 'USIM replacement quantity,' this appears to be a 'last resort' in response to subscriber churn after a hacking incident.
SK Telecom sent its 'eSIM conversion policy' to retailers in the metropolitan area on the 28th. Starting at 11 a.m. that day, the message stated that if stores attract new customers using eSIM, they will increase the existing incentive from 100,000 won to 150,000 won. Kim, who operates a mobile phone retail store in Sindorim, Seoul, noted, 'I have been in the mobile phone business for over 10 years, but this is the first time a policy encouraging eSIM subscriptions has been introduced.'
The eSIM (2,750 won) is less expensive than the USIM (7,700 won), which is why telecom companies had not actively utilized it until now. Using eSIM allows for subscription, cancellation, and changes to telecommunication services without having to visit a store.
Immediately after introducing the free replacement of USIM, SK Telecom required customers to visit direct and authorized stores to change their eSIM due to concerns over 'exposure to phishing crimes' that could occur with previously downloadable configurations. An industry insider stated, 'The eSIM has lower profits than USIM, which made companies hesitant to promote the switch.'
SK Telecom's push to encourage eSIM subscriptions follows a month-long subscriber decline after a hacking incident. The Ministry of Science and ICT issued administrative guidance to suspend new customer recruitment until the free replacement of USIM is back on track, and as a result, direct and authorized stores are only accepting customers changing devices. As of the previous day, 4.16 million customers were still waiting for the free replacement of their USIM.
Im Bong-ho, head of SK Telecom's Mobile Network Operations division, explained during a daily briefing the previous day, 'The incentive for retailers is lower than competitors, but we raised it for minimum response,' adding, 'We are operating the incentive focused on eSIM to activate eSIM subscriptions at retail stores.'
Last weekend (25th), SK Telecom set the sales incentives for high-end models at around 600,000 to 700,000 won and for low-end models at around 500,000 won. The sales incentive serves as the source of illegal subsidies (rebates). Additionally, for the '5GX Prime' plan at 89,000 won monthly, the subsidies for the Galaxy S25 series have been raised to 680,000 won (a 42% increase), while the iPhone 16 Pro and Pro Max subsidies have been raised to 650,000 won (a 44% increase).
As a result, the sharply declining new subscriptions are increasing. The number of incoming customers to SK Telecom was only 5,323 (an average of 295 per day) from the 5th to the 24th, but after significantly raising the sales incentives, there were 3,033 from the 25th to the 26th and 1,804 on the 27th, maintaining a high level.
Meanwhile, since the hacking incident at SK Telecom became known on the 22nd of last month, 447,866 customers have switched to competitors (KT and LG Uplus) up until the 27th of this month.