South Korean telecom giant KT said Tuesday it would replace all customer SIM cards free of charge and begin the process of selecting a new chief executive, as part of efforts to restore trust following a recent hacking scandal.
At a board meeting, KT approved a full-scale SIM replacement program, expanding beyond its earlier plan to assist only confirmed victims. The move follows weeks of public criticism and bipartisan pressure from lawmakers demanding stronger consumer protection.
Starting Nov. 5, customers can apply for the free replacement service online or via a hotline, then visit any KT service center to receive a new card. The rollout will begin in the Gwangmyeong and Geumcheon, on the Southern edge of Seoul, the areas first hit by the hacking, before expanding nationwide.
The decision comes after hundreds of unauthorized small payments were made in September, when fraudsters used unregistered femtocells — small portable base stations — to infiltrate KT users’ phones.
KT had already pledged to compensate about 22,000 customers, offering 100 gigabytes of free data for five months and either a 150,000-won ($108) phone bill discount or support for device replacement.
During a parliamentary audit on Oct. 29, CEO Kim Young-shub said preparations for a full SIM replacement were in the final stage, assuring lawmakers that sufficient inventories were secured to prevent service disruptions.
At the same meeting, the board approved the launch of the CEO selection process, as Kim’s term ends in March 2026. Kim confirmed he would serve out his remaining term but will not seek reappointment.
The CEO recommendation committee, composed entirely of outside directors, will oversee recruitment and screening of both internal and external candidates. Applications open Nov. 5-16, with a final candidate to be named by late December following shareholder approval.
“The committee will ensure a fair and transparent process that contributes to KT’s sustainable growth and shareholder value,” the company said.
herim@heraldcorp.com
