SK Telecom headquarters in Seoul (Newsis)
SK Telecom headquarters in Seoul (Newsis)

SK Telecom Co., South Korea's top mobile carrier, refused to accept a settlement proposal by a government-affiliated consumer agency to pay 100,000 won (US$69.40) per person in compensation to dozens of users over a personal data breach, industry sources said Friday.

The company submitted its decision in writing to the Consumer Dispute Settlement Commission earlier Friday, according to people familiar with the matter, rejecting the commission's settlement proposal that called for SK Telecom to pay compensation to 58 petitioners.

SK Telecom's rejection renders the proposal "concluded without a settlement," leaving the petitioners to file separate civil suits in court to pursue the matter.

"We have reviewed the settlement decision carefully, but took into account our proactive efforts to provide voluntary compensation and step up security, as well as the potential impact of accepting the proposal," the company said in a statement.

If it accepts the settlement, SK Telecom would likely have to pay the same amount of compensation to all other users, bringing the total to an estimated 2.3 trillion won.

"We ask for understanding that accepting the settlement proposal was difficult. We will make sure that we continue to bolster measures to restore customer trust and prevent further damage," it said.

In April last year, the company belatedly disclosed a major leak of universal subscriber identity module data affecting its 23 million user base, prompting an investigation by the regulatory authorities.

SK Telecom has also filed a lawsuit seeking to overturn a record 135 billion-won fine handed down by the state data protection regulator over the data leak, citing 1.2 trillion won it has already spent to compensate users and reform its data protection system, among other reasons. (Yonhap)