Did KT Admit to Mismanaging Micro Base Stations Linked to Illegal Payment Breaches?
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Synopsis
KT Corp's CEO admitted to serious management flaws regarding micro base stations linked to unauthorized payment breaches. The company is investigating the issue further and considering waiving fees for affected users. This incident raises questions about the security measures in place to protect user data.
Key Takeaways
- KT Corp acknowledged poor management of micro base stations.
- Unauthorized access affected 362 users, leading to significant financial damages.
- The company is expanding its investigation into all authentication methods.
- Measures are being taken to prevent future breaches.
- KT considers waiving fees for users whose data was compromised.
Seoul, Sep 24 (NationPress) The CEO of KT Corp, Kim Young-shub, publicly acknowledged on Wednesday that the company had inadequately overseen its micro base stations, which are associated with recent unauthorized mobile payment breaches. "Following the incident, we conducted a thorough review of our femtocell management and uncovered multiple vulnerabilities alongside poor oversight," Kim stated during a parliamentary hearing. "We have implemented measures to prevent unauthorized femtocells from connecting to our network."
A femtocell is a compact, low-power cellular base station, primarily intended for residential or small business use. Kim noted that KT outsources the installation and management of these devices, as reported by Yonhap news agency.
As per the company's findings, unregistered femtocells were integrated into its network around late August, compromising the private data of 362 users, with estimated damages reaching 240 million won (approximately US$173,000).
Kim further revealed that KT is broadening its investigation to encompass all authentication data, after lawmakers criticized the company's inquiry for focusing solely on breaches related to the automated response system (ARS). "Analysis requires time; we initially examined ARS data. We are now evaluating all authentication methods, including SMS," Kim added, mentioning that the company is trying to evaluate the full extent of the damage.
Earlier, KT explained that hackers had intercepted ARS calls designed to authorize mobile payments in several reported incidents.
Kim indicated that the company is contemplating waiving subscription cancellation fees for approximately 20,300 users whose private data may have been exposed after their mobile devices connected to the illegal base stations. The compromised data could include international mobile subscriber identity (IMSI) and international mobile equipment identity (IMEI) numbers, along with phone numbers.
"We are considering waiving cancellation fees for the 20,300 affected users," he stated. In response, Second Vice Science Minister Ryu Je-myung remarked that KT should eliminate subscription cancellation penalties if it is found to have breached its duty to ensure a secure telecommunications environment for users. "Investigators will assess whether KT violated this obligation and implement necessary actions," Ryu added.
Point of View
I believe that KT Corp's admission of mishandling micro base stations highlights a critical vulnerability in telecommunications security. It's imperative for companies to prioritize user safety and transparency, especially when user data is at risk. This incident serves as a wake-up call for the industry to strengthen its defenses against such breaches.
NationPress
24/09/2025
Frequently Asked Questions
What are femtocells?
Femtocells are small, low-power cellular base stations designed for use in homes or small businesses.
How did the unauthorized breaches occur?
Unauthorized breaches occurred when unregistered femtocells connected to KT's network, compromising user data.
What data was compromised?
Compromised data may include international mobile subscriber identity (IMSI) and international mobile equipment identity (IMEI) numbers, as well as phone numbers.
Is KT considering waiving fees for affected users?
Yes, KT is considering waiving subscription cancellation fees for approximately 20,300 users whose data was compromised.
What measures is KT taking to improve security?
KT is expanding its analysis of all authentication data and implementing measures to prevent unauthorized femtocells from connecting to its network.
