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KT waiving contract cancellation fees for customers following data breach

Published: 30 Dec. 2025, 17:07 Updated: 30 Dec. 2025, 18:26

Activists stage a protest in Seoul calling for a thorough investigation into a security breach at KT in this file photo from Sept. 15. [YONHAP]

KT said Tuesday it will waive cancellation fees for customers who wish to terminate their contracts with the mobile carrier, following a major data breach reported in September that led to a series of unauthorized micropayments.

On Monday, the government unveiled the results of its investigation into the security breach at KT, concluding that the incident was caused by the mobile carrier's poor management of femtocells, small base stations designed for use in homes or businesses.

“KT takes responsibility for the incidents, and we will waive cancellation fees for customers who wish to terminate their mobile service contracts with KT,” the company said in a release.

KT said users can apply to unsubscribe from Wednesday through Jan. 13, and the policy will also apply to customers who have already canceled their subscriptions since Sept. 1.

The mobile carrier said the waiver will be provided in the form of refunds.

New KT users who started subscribing after Sept. 1, however, will not be eligible.

“We deeply apologize to customers who suffered damage due to the breach,” KT CEO Kim Young-shub said in the release. “We take the joint government-private investigation results seriously and will work to minimize damage and inconvenience to users.”

KT said it will also provide 100 gigabytes of free monthly data for six months starting in January for all users, along with additional discount programs at cafes and movie theaters.

The company will further offer a two-year insurance program covering losses caused by voice phishing or scams. Users aged 65 and older will be automatically enrolled without a separate application.

A KT store is seen in Seoul on Dec. 29. [YONHAP]

To prevent a recurrence of the incident, KT said it plans to launch an information security task force to strengthen its data management system.

“We plan to enhance the security accountability system led by the chief information security officer, and to conduct regular security inspections led by management and the board of directors, enhancing security-related responsibility across the company,” it added.

According to the Ministry of Science and ICT, the incident resulted in unauthorized micropayments totaling 243 million won ($169,000), affecting 368 users.

The number of users whose mobile numbers, International Mobile Subscriber Identity numbers and International Mobile Equipment Identity numbers were compromised reached 22,227.

The government added that KT failed to fulfill its contractual obligations, making it possible for users to request that mobile carriers waive cancellation fees when they choose to unsubscribe.

Yonhap