Penalty fee waiver sparks mass exodus of KT subscribers

More than 216,000 KT mobile customers have left the operator after a mobile payment data breach, using a newly introduced penalty fee waiver to switch to rival providers. The waiver removed the usual cost of ending contracts early, making it easier for unhappy users to walk away.

The sharp outflow highlights how quickly customers will move when security fails and exit costs drop. KT now faces the twin problems of rebuilding trust after the breach and stemming further losses in a market where switching has suddenly become much cheaper.