TVING, an OTT (online video service) company under CJ ENM, stated that it chose to offer hacking and phishing peace of mind insurance rather than direct compensation for victims of the cyber intrusion as a way to "allow customers to feel more at ease." The perceived value of the compensation package, including insurance and points, is estimated at approximately 20,000 won per person.
TVING made these remarks during a question-and-answer session at an explanatory meeting on the cyber intrusion incident held at the Korea Hotel in Gwanghwamun, Seoul, on the 3rd.
Earlier, the joint government-industry investigation team under the Ministry of Science and ICT announced that 361 technical assets containing source code and approximately 39.54 million user accounts were leaked from TVING. The leaked accounts include about 22.06 million active accounts, approximately 17.37 million inactive accounts (due to dormancy or withdrawal), and around 110,000 test accounts.
When asked why the compensation plan focused on peace of mind insurance and points worth 5,000 won instead of direct compensation, Jang Hyun-kyung, head of TVING's Business Management Division, replied, "We wanted to provide customers with something that would give them greater peace of mind."
Division Head Jang explained, "We aimed to prepare services that allow customers to enjoy a good viewing environment and offer value they can choose and experience. Even if the peace of mind insurance does not directly address current compensation for damages, we believe it can contribute to giving customers peace of mind, which is why we chose this option."
TVING estimates the perceived customer value of its compensation package at approximately 20,000 won per person. However, the company did not disclose the total cost it will bear for compensation. This is because costs will vary depending on the number of applicants and the benefits they choose. TVING also explained that simply multiplying its internally estimated figure of about 19.5 million affected customers by 20,000 won would be inappropriate, as it would fail to account for overlaps. The perceived value for customers differs from the company's actual financial burden.
Applications for compensation will be accepted from the 7th to the 30th, spanning 24 days. Currently, benefits can only be received if applications are submitted within this period. Regarding whether the application period may be extended for customers who miss it, TVING stated, "We will discuss further internally."
Customers who have withdrawn or whose accounts are dormant are also included in the compensation target. However, they must re-register to verify their identity and match information held by TVING; there is no requirement to subscribe to a paid plan. The same benefits are provided per customer regardless of the type or scale of leaked information.
TVING also stated that this compensation package is separate from legal liability for damages. CEO Choi Ju-hee said, "While it may not be sufficient, we have prepared this compensation package for customers who suffered harm. We believe that legal compensation and fines must be fulfilled according to the law."
The scale of investment in information security was also disclosed in detail during the Q&A session. TVING plans to increase its spending from approximately 2.5 billion won last year to about 3 billion won this year, with a goal of expanding it to an annual range of 10–12 billion won within five years. The current number of security personnel, totaling around 10 including both internal and external staff, will be increased to between 25 and 30 over the next five years. Internal security staff are scheduled to expand from four currently to ten by the end of this year.
in TECH
