Data Breach Destroys SK Telecom Profits by 73 Percent
SK Telecom just reported one of the worst financial years in its history, and the culprit sits squarely on a cyberattack that exposed every single customer. The South Korean telecom giant watched its annual net profit crater 73 percent in 2025, dropping from 1.39 trillion won to a mere 375.1 billion won ($255.6 million).
The damage stems from a devastating data breach in April that compromised the USIM data of all 25 million subscribers. SK Telecom responded with a massive compensation program exceeding 1 trillion won, offering free USIM chip replacements for every customer while halting new subscriptions for two months. The financial bleeding continues as subscribers flee and costs pile up.
Financial Devastation Across All Metrics
The telecommunications leader disclosed dismal numbers in its Thursday regulatory filing. Operating income tumbled 41.1 percent year-over-year to 1.07 trillion won. Annual sales slid 4.7 percent to 17.09 trillion won, reflecting the dual impact of compensation expenses and customer exodus.
Fourth-quarter results painted an even grimmer picture. Net profit plummeted 75.4 percent compared to the previous year, landing at just 97 billion won. Operating profit fell 53.1 percent to 119.1 billion won during the same period, while revenue decreased 4.1 percent to 4.32 trillion won.
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The April Cyberattack That Changed Everything
Hackers struck SK Telecom’s main servers in April, potentially exposing universal subscriber identity module data across the entire customer base. The breach represented one of the largest telecommunications security failures in South Korean history, affecting all 25 million users without exception.
SK Telecom launched an unprecedented response to contain the fallout. The company committed more than 1 trillion won to a comprehensive package that included USIM chip replacements, direct compensation payments, and sweeping cybersecurity infrastructure upgrades. The carrier also took the drastic step of suspending new subscription services for a full two months.
Subscriber Loss Compounds Financial Pain
The data breach triggered a subscriber exodus that continues to hammer SK Telecom’s bottom line. Customers abandoned the carrier in droves, eroding the revenue base that had previously sustained robust profit margins. This decline in subscribers combined with massive compensation costs created a perfect storm of financial pressure.
The company acknowledges that both annual and quarterly earnings suffered under the weight of the compensation program and ongoing subscriber losses. Recovery remains uncertain as SK Telecom works to rebuild trust with remaining customers while competing against rivals eager to capture market share.
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Frequently Asked Questions
How much did the SK Telecom data breach cost the company?
SK Telecom spent more than 1 trillion won ($682 million) on compensation and cybersecurity improvements following the April 2025 breach. This massive expense replaced USIM chips for all 25 million customers, provided direct compensation payments, and funded infrastructure upgrades. The total financial impact pushed the company’s net profit down 73 percent for the year.
What data did hackers steal from SK Telecom customers?
Hackers accessed SK Telecom’s main servers and potentially exposed universal subscriber identity module (USIM) data belonging to the entire 25 million-user base. The company reported the cyberattack in April, confirming that the breach may have compromised USIM information across all subscribers. SK Telecom responded by offering free USIM chip replacements to every customer.
How did SK Telecom respond to the massive data breach?
SK Telecom launched a comprehensive response exceeding 1 trillion won in value. The carrier replaced USIM chips for all 25 million users at no charge, delivered compensation payments to affected customers, and invested heavily in cybersecurity infrastructure upgrades. The company also suspended new subscription services for two months while addressing security vulnerabilities.
Will SK Telecom recover from the 2025 financial losses?
Recovery remains uncertain as SK Telecom faces ongoing subscriber losses and damaged consumer trust. The company posted a net profit of only 375.1 billion won in 2025 compared to 1.39 trillion won in 2024, representing a 73 percent decline. Operating income fell 41.1 percent while revenue decreased 4.7 percent, indicating continued financial pressure as customers switch to competitors.
