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4w ago

SK Telecom Faces Fallout from Cyberattack as USIM Replacements Lag

South Korea’s largest mobile carrier struggles with inventory shortages, customer defections, and regulatory scrutiny after a data breach affecting 25 million users.

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Customers wait in line at an outlet of SK Telecom Co., South Korea's leading mobile carrier, in Seoul on April 29, 2025, to have a free universal subscriber identity module (USIM) replaced on their smartphones following a network hacking incident involving the potential leak of subscriber information. (Yonhap)
People wait in a line to receive new universal subscriber identity module (USIM) chips at Incheon International Airport, west of Seoul, on April 30, 2025. (Yonhap)

Overview

  • Over 70,000 customers have switched to rival carriers KT and LG U+ in two days, citing frustration with delays in SK Telecom’s USIM replacement program.
  • SK Telecom has replaced 280,000 USIM cards and received 4.32 million reservations, but inventory is limited to 1 million units initially, with 5 million more expected by the end of May.
  • The Personal Information Protection Commission is investigating the breach, believed to involve a leak from SK Telecom’s main server, with potential fines under revised data protection laws.
  • Government agencies, including the military and intelligence services, have mandated USIM replacements for official devices to address security risks.
  • SK Telecom is developing a software-based USIM modification solution to address inventory shortages, with plans to introduce it by mid-May.