LGU+ faces cross-party pressure over early termination fee waivers; Hong Beom-sik: “We will follow the judicial authorities’ decision”

[Financial News] Calls poured in from lawmakers across the political aisle for LGU+ to waive early termination fees for subscribers who switch to another mobile carrier if illegal conduct, such as deliberate concealment or obstruction of an investigation, is confirmed in connection with the LGU+ data breach. LGU+ CEO Hong Beom-sik said the company would take responsibility in accordance with the judicial authorities’ decision and government guidelines, but did not give a firm answer on whether it would waive the fees or issue retroactive refunds.
Appearing as a witness on the 23rd at the Science, ICT, Broadcasting, and Communications Committee of the National Assembly of South Korea’s comprehensive audit of the Ministry of Science and ICT, Hong said, “Regardless of the reason, I am deeply sorry for causing various inconveniences,” adding, “In accordance with the judicial authorities’ decision, we will certainly take all the measures we can to protect our customers and users.”
He added, “I promise here today that, once the judicial authorities issue their decision and the government provides guidance, we will fulfill all appropriate responsibilities in line with them.”


Lawmakers from both ruling and opposition parties called for LGU+ to waive users’ early termination fees if deliberate concealment of the hacking or obstruction of the investigation is confirmed. Lee Hoon-ki of the Democratic Party of Korea asked whether the company would waive early termination fees for switching carriers if deliberate concealment were confirmed. Cho Kyung-tae of the People Power Party also said the company should be held responsible if obstruction of the investigation or other wrongdoing is proven.
Han Jun-ho of the Democratic Party of Korea also demanded a clear position on waiving the fees and issuing retroactive refunds.
However, Hong stuck to his previous answer. He replied, “In terms of protecting our customers and users, I promise that once the judicial authorities issue their decision, we will do our utmost to carry out the measures we need to take.”
The government reiterated its position that the company would be at fault if deliberate concealment or obstruction of the investigation is confirmed.
Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon, responding to Cho’s question about who would be at fault if a user terminated their contract under these circumstances, said, “I believe the company would be responsible.”

The preservation of server data during the investigation into the breach was also questioned. One lawmaker said LGU+ had not informed investigators in advance that its servers were configured redundantly and had reinstalled the operating system (OS) without first obtaining an image of the infected server. In a written response to the lawmaker, LGU+ explained that it believed an analysis could be conducted by imaging (copying the storage device of) just one server because the two servers were synchronized. The lawmaker countered that synchronization between servers does not mean that traces of a hacker’s intrusion are copied identically. Hong Kwan-hee, LGU+’s chief information security officer (CISO), said, “I would like to apologize once again for our shortcomings in taking preservation measures.”
There was also criticism that guidance on USIM security measures was insufficient. Since last April, LGU+ has been offering free USIM replacements and updates in response to security concerns that some of a subscriber’s phone number is included in the existing International Mobile Subscriber Identity (IMSI), meaning the phone number could be inferred if the identifier were exposed. The measure is intended to reduce the risk of subscriber information being exposed by shifting the existing IMSI system to a random-number-based one. However, Cho Kyung-tae of the People Power Party said LGU+ was describing the measure only as a way to “use communications services more safely,” without explaining the security risks in concrete terms. Bae Kyung-hoon, Deputy Prime Minister and Minister of Science and ICT, said he would ensure that guidance was strengthened so users could fully understand the need to replace and update their USIMs.

[email protected] Choi Hye-rim Reporter