SK Telecom Rejects Mediator’s Proposal for Data Breach Compensation

Have you heard about SK Telecom and the data leak? It just got more complicated — SK Telecom rejected a settlement offer to pay people whose information was leaked. I just read about this, and it's a big deal.

What was an Offer?​

In November, the Personal Information Dispute Mediation Committee suggested that SK Telecom pay ₩300,000 (about $200) to each of nearly 4,000 users who complained that stress occurred because of the risks of phone cloning and replacing their SIM/USIM cards.

If SK Telecom would have accepted that offer, it would have amounted to a settlement without the need for litigation.

Why SK Telecom Said, "No"​

SK Telecom rejected the proposal as it did not account for any assistance or compensation they had already rendered or anything they had done to eliminate future data breaches.

A major consideration was the cost. If they had to pay all customers affected by the data breach estimated to be 23 million customers, it could cost nearly ₩7 trillion.

What Happens Next​

Since SK Telecom declined the deal created at mediation, there will be no settlement. Anyone but SK Telecom who wishes to receive compensation will now have to file a civil lawsuit.

SK Telecom maintains it will improve security, work hard to have no future leaks, and will try to rebuild trust. Meanwhile, the mediation committee will continue with legal proceedings.

What I Think​

In all honesty, I can see both sides. SK Telecom is worried about significant money being lost to the law suit, and users are upset because they were part of the cause and just want to be heard and to try and get help.

If I was in SK Telecom's position, I would try as hard as I could to find a middle ground solution for the users, somewhat fair, but also not as a cost to the company.