(C) KT
SEOUL — KT Corporation is witnessing a significant wave of customer departures following its decision to waive contract termination fees in the wake of recent security breaches. On the first day of the waiver program, nearly 6,000 subscribers left the carrier, signaling a turbulent start to the new year for South Korea’s second-largest telecommunications provider.
Immediate Impact of the "Penalty-Free" Window
According to industry data released on December 31, a total of 5,886 subscribers switched from KT to competing carriers in a single day. The breakdown shows a clear preference for major competitors:
SK Telecom (SKT): Gained 4,661 former KT users.
LG Uplus (LGU+): Gained 1,225 former KT users.
This surge represents a twofold increase compared to the previous day’s departure rate. Notably, the total number of mobile number portability (MNP) cases nationwide skyrocketed to 13,201, nearly double the daily average of 6,000 to 7,000.
Security Breaches and Corporate Apology
The exodus follows a series of damaging incidents, including unauthorized micro-payments and large-scale personal data leaks. On December 30, KT CEO Kim Young-shub issued a public apology at the company’s Gwanghwamun headquarters, unveiling a "Customer Compensation Program" and a "Security Innovation Plan."
As part of this redress, KT announced a two-week penalty waiver period (December 31 to January 13). The company also applied this retroactively to customers who left between September 1 and December 30. However, the waiver excludes those who newly joined, changed devices, or renewed contracts after September 1, as well as MVNO (budget phone) and IoT users.
Market Outlook: A Competitive Weekend Ahead
Industry analysts expect the outflow to intensify over the first weekend of January. "With the financial burden of termination fees removed, the barrier to switching has disappeared," an industry insider noted. "Aggressive marketing and increased subsidies from SKT and LG Uplus are likely to capitalize on KT's vulnerability."
As KT struggles to regain consumer trust, the coming days will serve as a critical litmus test for the company’s ability to stabilize its subscriber base amidst its worst security crisis in years.
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