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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] SEOUL, September 18, 2025 – KT announced today that additional victims have been identified in the recent unauthorized micro-payment case, with total damages now exceeding KRW 2.4 billion. The company admitted shortcomings in its initial response, drawing scrutiny from lawmakers and customers alike.
According to KT, the number of affected customers has risen from 278 to 362, while the number of fraudulent transactions has also expanded. The company explained that since June it has been conducting a full review of ARS-authenticated micro-payments, analyzing transaction and call patterns, and cross-referencing log anomalies with small-cell network data to identify suspicious activity.
This led to the discovery of unauthorized charges beyond gift card purchases, including public transportation card top-ups, as well as the identification of two additional rogue small-cell IDs.
However, KT is under fire for its delayed response. Documents released by Rep. Hwang Jung-ah of the Democratic Party show that between August 5 and September 3, 278 customers were subject to 527 unauthorized transactions. Cases spiked from under 10 daily to 106 transactions on August 27. Despite repeated complaints from victims, KT initially dismissed the issue as routine “smishing.”
The police formally notified KT on September 1 that unauthorized charges were taking place, but the company reportedly responded that “no hacking could have occurred,” and failed to take immediate countermeasures. As a result, losses continued to mount, with 38 and 71 additional cases recorded on September 2 and 3, respectively.
As of September 18, the total number of affected customers has reached 362, with damages amounting to KRW 2.4 billion (approx. USD 1.7 million). Regulatory and public pressure is now building for KT to strengthen its cybersecurity measures and accountability processes.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
