A customer visiting an SKT store for a SIM card replacement. (Image courtesy of Yonhap)
SEOUL, June 19 (Korea Bizwire) — A wave of consumer complaints is erupting over how some South Korean law firms are handling group lawsuits related to the high-profile hacking incident involving SK Telecom.
Critics say certain firms are aggressively soliciting participants and collecting upfront fees without adequate explanation—only to later demand detailed evidence of damages, blindsiding many clients.
According to legal and industry sources on Wednesday, one prominent law firm, identified only as Firm A, advertised that consumers could receive a minimum of 500,000 won in compensation simply by verifying service usage history, regardless of whether they had suffered direct financial losses. Participants were asked to pay a retainer fee upon joining the lawsuit.
However, after payment, clients were told they needed to submit personal documentation proving actual damages—contradicting the firm’s initial promise. This reversal has triggered widespread frustration in online communities such as Naver Cafes and KakaoTalk chat rooms.
“I thought the case was about holding SK Telecom accountable for leaking my data—not proving financial loss,” one commenter wrote. Others accused the firm of changing its terms post-payment and questioned whether the practice bordered on a violation of South Korea’s Attorney-at-Law Act.
Under Article 23 of that law, lawyers are prohibited from misleading advertising that exaggerates potential outcomes or omits crucial information that could mislead clients.
“This reflects a troubling pattern where some attorneys, in a saturated legal market, focus excessively on mass recruitment for group lawsuits without properly following through on litigation,” said one legal expert. “Such practices not only harm consumers but erode public trust in legal services.”
SK Telecom Authorized Stores in Seoul. (Image courtesy of Yonhap)
The issue is not without precedent. In a 2007 case involving a massive data breach at Auction Korea, a lawyer recruited over 100,000 plaintiffs online, collected retainers, and then delegated the litigation to another attorney. The case was ultimately lost at trial, and the appeal was abandoned—leaving participants with no recourse and additional costs.
More recently, the group lawsuit over Samsung’s Galaxy GOS (Game Optimizing Service) software ended similarly. The court ruled against plaintiffs, citing their failure to submit evidence proving that high-performance apps were throttled, despite having over 1,800 participants and ample preparation time.
Retainers for such lawsuits typically range from 5,000 to over 100,000 won per person. With thousands—or even tens of thousands—of participants, law firms can collect tens of millions of won in fees, even if the case fails in court.
Legal experts and consumer advocates are now calling for tighter oversight. “To ensure group lawsuits remain a tool for consumer protection—not profit schemes—law associations like the Korean Bar Association must crack down on misleading advertising,” said one industry representative.
“Lawyers themselves must also take greater responsibility and focus less on aggressive marketing and more on competent, ethical litigation.”
The controversy poses a credibility challenge to the legal community under President Lee Jae-myung’s government, which has emphasized consumer protection and transparency. It also comes at a time of increasing public scrutiny of tech companies and data privacy practices, both domestically and under renewed digital policy debates with the re-elected Trump administration in Washington.
Ashley Song (ashley@koreabizwire.com)
