Are KT and LG Uplus Facing Investigation for Data Leaks?

Synopsis
Key Takeaways
- KT Corp. and LG Uplus Corp. are under investigation for customer data leaks.
- 124 unauthorized payments reported, totaling 80.6 million won in damages.
- The PIPC is actively investigating the situation.
- Similar issues have been reported in nearby regions.
- Penalties for data breaches can reach up to 3% of total sales.
Seoul, Sep 10 (NationPress) The data protection regulator initiated an investigation on Wednesday into prominent telecommunications firms KT Corp. and LG Uplus Corp. concerning potential breaches of customer data, triggered by a spate of unauthorized mobile transactions reported by KT subscribers.
This action follows numerous reports from KT customers in the southwestern region of Seoul and adjacent areas within the greater capital region, who have raised alarms over unauthorized payments, as indicated by reports from Yonhap news agency.
The Personal Information Protection Commission (PIPC) disclosed its decision to examine both carriers, emphasizing that it had been alerted to the allegations of data leaks recently highlighted in the media.
"Despite the companies not reporting any personal data breaches, we have commenced an investigation focused on validating the details of the event and determining if personal information has indeed been compromised, following requests from community groups and reports from victims of unauthorized payments," stated the PIPC in a press release.
As of Tuesday, KT users have reported a total of 124 instances of unauthorized mobile payments since August 27, with losses amounting to 80.6 million won (approximately US$58,000), according to the Gyeonggi Nambu Provincial Police.
The reported incidents have originated from the Geumcheon district in Seoul and surrounding cities such as Gwangmyeong and Bucheon, with additional similar reports emerging from Incheon and Gwacheon.
Authorities have been collaborating with KT to delve deeper into this matter.
On Tuesday, the Ministry of Science established a special task force to investigate the unauthorized mobile payments.
In related news, the data protection regulator is poised to impose penalties on SK Telecom Co. following a significant data breach that impacted millions of customers.
In April, SK Telecom belatedly disclosed a breach involving the possible leakage of universal subscriber identity module (USIM) data due to a cyberattack on its servers, which led the company to provide complimentary USIM replacements to around 25 million users. The regulator has since concluded its investigation into this breach and informed SK Telecom of the planned actions late last month.
Under the personal information protection law, companies may face fines of up to 3 percent of their total revenue, although revenue from unrelated sectors may be excluded from this calculation.