Over 30,000 KT Users Switch Mobile Carriers After Penalty Waiver

Intermediate | January 11, 2026

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A Sudden Subscriber Shake-Up at KT

If you’ve ever felt trapped in a long phone contract, you know the pain: you want to leave, but the cancellation fee makes you hesitate. That’s why a recent move by KT (Korea’s second-largest mobile carrier) got everyone’s attention.

After a security breach, KT began waiving contract termination penalties—and a lot of customers took that as their chance to switch. In other words, KT users switch mobile carriers when the barriers to leaving suddenly disappear. (KBS World)

The Numbers: KT Users Switch Mobile Carriers in 3 Days

Industry sources reported that 31,634 KT users moved to other carriers over a three-day period (Wednesday to Friday). Out of those:

18,720 signed new contracts with SK Telecom
7,272 moved to LG Uplus
The remaining customers chose MVNOs (budget carriers using big-network infrastructure)

In other words: once the “exit fee” disappeared, switching became a lot easier. (KBS World)

What Triggered the Penalty Waiver?

According to a joint government–civilian investigation, an illegal femtocell accessed KT’s internal network, and data tied to 22,227 users was compromised—specifically items like mobile numbers and identifiers used by devices and SIMs.

The same incident also led to unauthorized micropayments totaling 243 million won (about $168,000) affecting 368 users. KT said it would keep waiving cancellation fees until January 13. (KBS World)

Why Did So Many People Choose SK Telecom?

A big reason seems to be incentives—the perks carriers offer to attract switchers. Another interesting detail: observers noted SK Telecom had a reinstatement policy for customers who had previously left SKT after its own breach, which may have encouraged some customers to “go back home.”

Translation: telecom competition isn’t just about network quality. It’s also about trust, brand reputation, and who offers the best deal when people are ready to move. (Korea JoongAng Daily)

The Business Lesson: When Exit Gets Easy, Behavior Changes

In business, people tolerate small problems when switching is expensive or complicated. But the moment a company removes barriers—like early termination fees—customers suddenly have options.

For KT, the immediate challenge is stopping the outflow. The KT users switch mobile carriers wave is a clear signal that trust can be lost fast—and expensive to rebuild. The bigger challenge is rebuilding confidence. Because once a customer feels their data isn’t safe, a discount alone may not fix that.

Vocabulary

waive (verb) – to officially remove or not require a rule, fee, or payment.
Example: KT decided to waive cancellation fees for customers who wanted to leave.
termination fee (noun) – money you must pay to end a contract early.
Example: Many people stay because the termination fee is expensive.
subscriber (noun) – a customer who pays for a service, especially monthly.
Example: KT lost thousands of subscribers in just a few days.
security breach (noun) – an incident where data or systems are accessed illegally.
Example: The security breach raised concerns about customer privacy.
compromised (adjective) – no longer secure because information was exposed or accessed.
Example: KT said some user data was compromised.
unauthorized (adjective) – done without permission.
Example: Some users reported unauthorized micropayments.
micropayment (noun) – a very small online payment, often through a phone bill.
Example: The hack led to micropayments that users didn’t approve.
investigation (noun) – an official process to find facts about a situation.
Example: A joint investigation examined how the network was accessed.
incentive (noun) – a benefit used to encourage a certain action.
Example: Carriers often offer incentives to attract switchers.
reinstatement (noun) – restoring something that was removed, like benefits or membership.
Example: SK Telecom offered reinstatement of benefits for returning customers.

Discussion Questions (About the Article)

What made it easier for KT customers to switch carriers?
Which carrier gained the most former KT users, and why?
What kinds of user information were reported as compromised?
Why might customer trust be harder to rebuild than subscriber numbers?
If you were KT’s CEO, what would you do in the next two weeks?

Discussion Questions (About the Topic)

Should telecom companies be required to waive fees after a major breach? Why or why not?
What matters more to you: price, network quality, or trust? Explain.
How should companies compensate customers after a data breach?
What kinds of incentives feel fair—and what kinds feel “too aggressive”?
Should customers have more control over contract rules in general?

Related Idiom

“Vote with your feet” – to show your opinion by leaving and choosing something else.

Example: “When KT waived the fee, thousands of users voted with their feet and switched carriers.”

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This article was inspired by: The Korea Herald, KBS World, and Korea JoongAng Daily.