Data breach costs lead to 90% drop in operating profit at South Korean telecom giant

Data Breach Causes 90% Drop in SK Telecom's Operating Profit

SK Telecom, a leading South Korean mobile carrier, reported a significant 90% decrease in operating profit for the third quarter due to costs linked to a large-scale data breach. The cyberattack, revealed in April, compromised personal data of about 27 million customers.

Financial Impact of the Cyberattack

The company announced an operating profit of 48.4 billion won ($34.1 million), sharply down from 493 billion won a year earlier, alongside a 12.2% drop in sales, based on its recent earnings report. This marks the end of a continuous run of quarterly profits since 2000, according to local media.

Company Response and Regulatory Actions

Due to the financial strain, SK Telecom suspended its third-quarter dividend but promised to reinstate it when conditions improve. The breach was traced to network infiltration in 2022 via 25 malware types that remained undetected for nearly three years, exposing sensitive subscriber information such as identity numbers, authentication keys, network logs, and SIM card text messages.

"The sharp decline stemmed from compensation and recovery costs following a large-scale cyberattack that exposed the personal data of about 27 million customers."
"The company suspended its third-quarter dividend due to the financial hit but pledged to resume payouts once business conditions stabilize."

Author's Summary: SK Telecom faced a massive profit drop after a prolonged data breach exposed millions of customers' data, resulting in hefty fines, paused dividends, and major cybersecurity overhauls.

more

The Record from Recorded Future News The Record from Recorded Future News — 2025-11-04

More News