A view of a KT retail store in Seoul (Image courtesy of Yonhap)
SEOUL, Sept. 29 (Korea Bizwire) — South Korea’s second-largest telecom carrier, KT, is under mounting criticism from consumers and legal experts for refusing to disclose key network data in cases involving unauthorized mobile phone payments, even as reports of such incidents climb.
Authorities say nearly 19,300 cases of fraud involving mobile micropayments were reported last year, ranging from phishing and smishing scams to identity theft and so-called “phone loan” schemes.
The recent spotlight on KT followed revelations of mass unauthorized charges tied to rogue base stations, prompting compensation for those victims. But many others facing unexplained charges say they remain without recourse.
At the center of the dispute is access to base station location data. Such information could show whether fraudulent charges originated from a victim’s actual phone or from a cloned device operating elsewhere. Yet KT has consistently refused to provide this data, claiming it only stores transmission records needed for billing, not reception records that could prove hacking.
One KT customer in Gwangju reported more than 2.2 million won ($1,600) in unauthorized game currency charges since late last year, along with repeated attempts to alter passwords to his Naver, securities, and KakaoTalk accounts.
He requested base station logs to verify suspected SIM cloning but said KT rebuffed him, suggesting instead that a family member might have made the purchases.
As hacking incidents at telecom companies continue to expose customer data, concerns are mounting over potential breaches at South Korea’s three major mobile carriers. (Yonhap)
The company’s stance is not new. Lawmakers revealed that in a 2021 SIM-swapping case, in which dozens of customers lost cryptocurrency worth up to 2.7 billion won each, KT similarly refused to release base station data.
Even after the Personal Information Dispute Mediation Committee ruled that such records constituted personal data under the law and should be disclosed, KT declined to comply, settling lawsuits without ever providing the information.
Consumer advocates argue the refusal leaves victims unable to prove their innocence. “Users are forced to fight blind, unable to access their own data while telecoms emphasize their own liability concerns,” said Kim Borami, an attorney with Law Office Dike. She urged lawmakers to amend privacy law to explicitly classify both transmission and reception base station data as personal information.
Other carriers note that base station data is typically stored for three months under standard terms and conditions and can be shared if it does not interfere with investigations. Critics say KT has taken an especially restrictive approach.
For now, some victims are preparing collective legal action through the Korea Legal Aid Corporation. “The small-payment scandal may have exposed one type of fraud,” one customer said, “but many of us are still left vulnerable, without the proof we need to clear our names.”
Kevin Lee (kevinlee@koreabizwire.com)
