KT Corp. CEO Kim Young-shub issued a public apology Thursday over a recent scandal involving unauthorized micropayment fraud linked to the telecom giant, vowing full accountability and a comprehensive response to regain public trust.
“I sincerely apologize for the deep concern and anxiety caused by the recent incidents of unauthorized micropayments,” Kim said during a press briefing in Seoul.
“We regret the distress this has inflicted on our customers, the general public and government authorities.”
The controversy centers on illicit micro base stations believed to have been used to harvest personal information from unsuspecting mobile users. KT confirmed that the data of 5,561 customers may have been compromised through these unauthorized stations.
The company has reported the breach to the Personal Information Protection Commission, escalating the case to a formal investigation.
Kim emphasized that KT is cooperating closely with law enforcement and relevant authorities to determine the root cause of the breach and implement strict countermeasures.
“We are mobilizing all available resources to prevent further damage,” the CEO said. “This includes technical safeguards and a full compensation plan for affected customers. As a telecommunications provider, we will fulfill our responsibilities with the utmost seriousness.”
KT’s internal investigation revealed that the attackers targeted International Mobile Subscriber Identity numbers -- unique codes embedded in users’ USIM cards -- via rogue base stations. These identifiers were reportedly exploited to process unauthorized micropayments.
To address the situation, KT has begun notifying potentially affected customers via short message service. The messages guide customers through checking for fraudulent activity, applying for free USIM card replacements, and enrolling in protection services.
The company also said it has secured sufficient USIM inventory and launched a 24-hour dedicated customer service center to assist those impacted.
According to police records, the earliest known fraudulent transaction tied to the breach occurred on Aug. 27. As of Wednesday, KT had identified 278 cases of unauthorized payments, with total damages estimated at approximately 170 million won ($122,400).
yeeun@heraldcorp.com
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