(C) Telecompaper

SEOUL – The Consumer Dispute Settlement Commission (CDSC), under the Korea Consumer Agency, has reached a landmark decision regarding the massive personal data breach involving SK Telecom (SKT). On December 21, 2025, the commission ordered the mobile carrier to provide compensation worth 100,000 KRW to each individual affected by the hacking incident that occurred earlier this April.

Details of the Compensation Plan

The commission’s decision follows a collective dispute mediation filed in May by a group of consumers seeking damages and preventive measures. After reviewing the findings of a joint government-civilian investigation and subsequent sanctions by the Personal Information Protection Commission (PIPC), the CDSC formally recognized SKT’s liability for the breach.

The proposed compensation package consists of:

50,000 KRW in direct communication fee discounts.
50,000 T-Plus Points, which can be used like cash at various affiliated retailers.
Unprecedented Financial Impact
While the initial mediation was sparked by 58 applicants, the commission intends to extend this settlement to the entire affected population if SKT accepts the decision. With an estimated 23 million victims—nearly half of the South Korean population—the total compensation scale is projected to reach a staggering 2.3 trillion KRW (approximately $1.7 billion USD). This would mark the largest payout in the history of domestic personal information disputes.

Next Steps and Corporate Accountability

The CDSC plans to deliver the formal mediation notice to SKT shortly. The carrier must notify the commission of its acceptance or rejection within 15 days of receipt. Han Yong-ho, Chairman of the Commission, stated, “This plan was designed to ensure swift recovery for consumers while encouraging the business to restore trust through voluntary compensation. In light of recurring data leaks, companies must reinforce both technical and institutional safeguards.”

Industry experts are closely watching whether SKT will accept the record-breaking financial burden or opt for a protracted legal battle in court. The incident has reignited national debates over the adequacy of cybersecurity infrastructure within South Korea's leading telecommunications providers.