Corporate Logo(source: sktelecom.com)
Shares of SK Telecom (017670) fell sharply on July 4, closing down more than 5%, after the South Korean government ordered the company to waive termination penalties for users affected by a recent hacking incident.
The stock ended the session at 54,400 won, a decline of 5.56% from the previous day’s close. After trading relatively flat during the morning session and briefly turning positive ahead of the announcement, the stock reversed course and began to fall rapidly once the government's decision was made public.
The sharp drop followed a statement by the Ministry of Science and ICT, which held SK Telecom responsible for the incident. The ministry stated that the company had violated its contractual obligation to provide secure telecommunications services and must therefore exempt customers who terminate their contracts from early cancellation fees. The announcement triggered heightened concerns over potential subscriber losses.
The ministry further warned that if SK Telecom refuses to comply with the directive, it could face administrative actions, including corrective orders or even license revocation.
Prior to the announcement, many market participants believed the government would refrain from imposing such a stringent measure. However, the unexpected severity of the government’s response has prompted speculation that this could significantly alter the competitive landscape in the telecommunications sector.
Meanwhile, KT (030200), which is expected to benefit from a potential shift in market dynamics, gained 2.12% on the day.
*[KOSPI] SK Telecom(017670) provides wireless telecommunication services including mobile phones, wireless data, and information and communication services, as well as wired telecommunication services including telephone, high-speed Internet, data and network leasing services, plus platform services and internet portal services. The market capitalization is 12.37 trillion won (as of July 3, 2025, closing price).
Corporate Logo(source: sktelecom.com)
Shares of SK Telecom (017670) fell sharply on July 4, closing down more than 5%, after the South Korean government ordered the company to waive termination penalties for users affected by a recent hacking incident.
The stock ended the session at 54,400 won, a decline of 5.56% from the previous day’s close. After trading relatively flat during the morning session and briefly turning positive ahead of the announcement, the stock reversed course and began to fall rapidly once the government's decision was made public.
The sharp drop followed a statement by the Ministry of Science and ICT, which held SK Telecom responsible for the incident. The ministry stated that the company had violated its contractual obligation to provide secure telecommunications services and must therefore exempt customers who terminate their contracts from early cancellation fees. The announcement triggered heightened concerns over potential subscriber losses.
The ministry further warned that if SK Telecom refuses to comply with the directive, it could face administrative actions, including corrective orders or even license revocation.
Prior to the announcement, many market participants believed the government would refrain from imposing such a stringent measure. However, the unexpected severity of the government’s response has prompted speculation that this could significantly alter the competitive landscape in the telecommunications sector.
Meanwhile, KT (030200), which is expected to benefit from a potential shift in market dynamics, gained 2.12% on the day.
*[KOSPI] SK Telecom(017670) provides wireless telecommunication services including mobile phones, wireless data, and information and communication services, as well as wired telecommunication services including telephone, high-speed Internet, data and network leasing services, plus platform services and internet portal services. The market capitalization is 12.37 trillion won (as of July 3, 2025, closing price).