KT Faces Allegations of Downplaying Warning Signs Ahead of Small-Payment Fraud Scandal

Reporter Kim Jisun / approved : 2025-09-11 03:03:10
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Photo courtesy of Yonhap News

 

 

[Alpha Biz= Kim Jisun] Seoul – Fresh controversy has emerged over KT’s handling of the recent unauthorized small-payment fraud incidents. Lawmakers claim that police had already alerted the telecom operator to suspicious activity before the scandal came to light, yet KT reported to regulators that there had been “no warning signs.”



According to Rep. Hwang Jeong-a of the National Assembly’s Science, ICT, Broadcasting and Communications Committee on September 10, KT stated in its official breach notification to the Korea Internet & Security Agency (KISA) on September 8 that it had detected “no anomalies prior to the recognition of damages.” The report also noted that the “time of the incident could not be confirmed.”



Rep. Hwang’s office criticized the filing, saying:
“While it may be difficult for KT to pinpoint exactly when the hacking occurred using illegal micro-base stations, it is hard to accept that the company reported no warning signs at all—especially after police had already conveyed details of the case on September 1. Unless this was an attempt to downplay or conceal the matter to avoid legal responsibility, the explanation falls short.”



The lawmaker further added:
“KT’s alleged cover-up attempt makes this crisis resemble an onion—layer after layer of negligence and concealment. The Ministry of Science and ICT’s delayed response is also deeply concerning. Transparent disclosure of investigative information, robust measures to prevent recurrence, and fair compensation for victims must all be part of the discussion moving forward.”

 

 

 

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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