![]() |
KT CEO and Chairman Hwang Chang-gyu bows during a news conference at its head office in Gwanghwamun, downtown Seoul, Friday, to apologize over a customer information leak. / Yonhap |
"After we confirm how the personal information of our customers was leaked, we can discuss measures to cope with the situation," a KT official said.
"If there are any victims related to the data leak, we will seek ways to compensate them. Once an ongoing investigation is completed, we will hold a press conference to announce measures, including compensation," he added.
The move toward compensation came amid mounting criticism that the nation's second-largest mobile carrier has mismanaged its online security system despite a similar incident two years ago.
In 2012, personal information of about 8.7 million mobile phone subscribers was stolen from KT by hackers, who sold the information to telemarketers. At the time the firm vowed to strengthen its online security system, but it appears to have failed to keep its promise.
The company is facing criticism over its security system because it did not discover the leak until recently, even though the hackers had been stealing customers' personal data since February 2013.
The latest incident was made public after the police announced Thursday that they had arrested three suspects for allegedly hacking into KT's website and stealing data of some 12 million customers of the mobile carrier.
According to police, the leaked data includes the victims' names, resident registration numbers and bank account information. The suspects sold it to telemarketers, but people are concerned that the information could be used in crimes such as voice-phishing scams.
Civic groups have demanded the company compensate victims for any damages and punish those responsible so that there will be no similar incidents.
"This is the second time for KT to be involved in a customer data leak. It means the company failed to strengthen its online security" Seoul YMCA said in a statement. "Strong punishment is required to prevent similar incidents from occurring again."
Individual customers are also preparing for a class action suit by creating an online community for victims, which could be another setback for KT.
With mounting criticism against it, KT made an immediate apology, saying it will take the necessary steps to minimize the impact of the theft.
"We will upgrade our online security system as soon as possible," KT CEO and Chairman Hwang Chang-gyu said Friday during an emergency news conference at the firm's head office in Gwanghwamun, downtown Seoul. "We will correct what we've done wrong and also find out the cause of the incident and punish those responsible for it."
He also pledged to closely cooperate with the authorities' investigation into the incident. KT will create a system on its website to allow users to check if their information was included in the hacked data.
Meanwhile, the Ministry of Science, ICT and Future Planning said it will establish a team of government officials and online security experts for an investigation into the leak with the cooperation of the Korea Communications Commission.
The ministry will also operate an around-the-clock service center to receive reports on damages incurred. It also warned the firm's customers to be wary of calls and texts from people impersonating KT staff.