SK Telecom files legal challenge to record $91M fine after data leak

SK Telecom filed an administrative lawsuit on Monday, challenging the record-breaking 134.8 billion won ($91 million) fine imposed on the telecommunications company over a massive data breach last year.

A pedestrian walks by an SK Telecom shop in Seoul on Nov. 4. [NEWS1]

SK Telecom (SKT) filed an administrative lawsuit on Monday, challenging the record-breaking 134.8 billion won ($91 million) fine imposed on the telecommunications company over a massive data breach last year.

The telecommunication company filed a complaint with the Seoul Administrative Court a day before the 90-day deadline to appeal the decision made by the Personal Information Protection Commission (PIPC).

The privacy watchdog reported Aug. 28 that the personal data of 23.2 million subscribers was leaked, including phone numbers, SIM authentication keys and subscriber identification numbers. Twenty-five different types of data were leaked, according to the PIPC.

The PIPC imposed the record 134.79 billion fine, citing SKT's negligence in protecting consumer data, higher than the 100 billion fine imposed on Google and Meta in 2022. It is the highest fine imposed since the committee was formed in 2020.

SKT said its 1.2 trillion won package, intended to compensate consumers and invest in security, alongside the absence of reported financial incidents, should be accounted for when calculating the fine.

SKT offered to replace SIM cards for all its subscribers, discounted monthly bills and provided 50 gigabytes of free data until the end of 2025.

"We are seeking a detailed judicial review of whether the PIPC's penalty is appropriate," the telecommunication company said on Monday.

BY CHO YONG-JUN [cho.yongjun1@joongang.co.kr]