SKT instructed to stop new sign-ups until USIM shortage resolved
Outbound travelers wait in line at SK Telecom's roaming center at Incheon International Airport, Thursday, to replace universal subscriber identity module (USIM) following a data breach at the mobile carrier. Yonhap
The Ministry of Science and ICT on Thursday instructed SK Telecom to suspend new subscriber sign-ups until it resolves the ongoing universal subscriber identity module (USIM) shortage related to the company’s recent data breach.
According to the ministry, it issued administrative guidance on the mobile carrier to prevent customer damages stemming from the data breach.
The ministry also demanded SK Telecom submit a detailed implementation plan for its pledge to automatically apply USIM protection services to vulnerable users, as well as coming up with plans to compensate damages related to the incident.
On April 22, SK Telecom announced that it had detected a breach in its internal system on April 18, and the company has been replacing USIM for its 23 million subscribers for free since Monday as a preventive measure.
The USIM replacement program, however, triggered a nationwide disruption and consumer uproars as the company’s USIM inventory fell far short of demands. SK Telecom currently has 1 million in stock, and its CEO Ryu Young-sang said Wednesday that the company will be able to secure an additional 5 million by May and 5 million more in June.
The government’s instruction is seen as a response to public criticism over SK Telecom continuing to sign up new subscribers despite claiming it lacks sufficient USIM inventory for its free replacement program.
An administrative guidance is not legally binding, but widely considered as a compelling order because it is issued by a regulatory authority with licensing power.
“We feel a deep sense of responsibility regarding the current situation and are reviewing possible measures in response to the administrative guidance,” SK Telecom said in a statement. “Further details will be shared in a press briefing tomorrow.”
Over the past week, approximately 90,000 subscribers have left SK Telecom, with more than 70,000 leaving from Monday to Tuesday. Lawmakers are now calling on the company to waive early termination fees for subscribers who switch to other carriers, but SK Telecom is reiterating that it will review the matter.
A day earlier, the National Assembly demanded SK Group Chairman Chey Tae-won to appear at a hearing session on the data breach, but Chey did not appear citing dental treatment. The Assembly is set to hold a hearing session again on May 8, demanding Chey’s appearance at then.